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Tuesday, July 20, 2021

Question no 3862 : Strategy decision

In SAP PP as at ECC6.0 EhP6, consider the following business scenario; the manufacturing department was disappointed with the inaccurate forecast by the Sales Department. The Planning Manager has successful negotiated with the Directors to eliminate this issue; from now on, once production completes the production quantity, all the quantities produced stored into the finished goods warehouse belongs to the Sales department. The biggest change will be that the all Sales Orders with their forever changing dates and quantities is no longer the problem of planning and shall be ignored entirely. The only thing communicated from the Sales department to the Planning department is the Planned Independent Requirement and the Production facility's responsibility to to fulfill the requirement of the PIR only. Which of the following Strategy would you recommend ?

(only one answer)

A)  Strategy 10.
B)  Strategy 11.
C)  Strategy 20.
D)  Strategy 30.
E)  Strategy 40.
.

Answer: B

Make-to-Stock Strategy
Strategy 11 ignores both Sales Order and Stocks, planning is based on PIR only.
Strategy 10 ignores Sales Order but consider Stocks and PIR in MRP run.
Strategy 30 combines both PIR and Sales Order, and consider stocks in MRP run.
Strategy 40 with Sales Order consuming/reducing the PIR (common strategy used).

Make-to-Oder Strategy
Strategy 20 PIR not allowed, planning MRP based on MTO Sales Order.

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