SAP What is # 11 - What is Strategy "50" ?

Strategy "50" is basically another Make-to-Order (MTO) strategy...

However, it generally combines the characteristics of strategy "40" and "20"...
Strategy "40" is a Make-to-Stock (MTS) strategy
Strategy "20" is a Make-to-Order (MTO) strategy where PIR is not allowed....

Production order of the finished goods is still not allowed until the Sales Order arrive (a basic characteristics of MTO strategy) but with a PIR, procurement of the raw materials are possible without the Sales Order of the finished goods ....

When you need a MTO strategy which allows you to have PIR so that you can at least forecast planning for
the raw materials, Strategy "50" should be considered; you will see this in the following slides...