Production Planning or Demand Management in Supply Chain Management is key for manufacturing companies as they need to determine requirement quantities and delivery dates for finished product assemblies.
To create the demand program, you must select a planning strategy for a product in the product master record. Planning strategies represent the methods of production for planning and manufacturing or procuring a product.
Using these strategies, you can decide if production is triggered by sales orders (make-to-order production), or if it is not triggered by sales orders (make-to-stock production).You can have sales orders and stock orders in the demand program. If the production time is long in relation to the standard market delivery time, you can produce the product or certain assemblies before there are sales orders. In this case, sales quantities are planned, for example, with the aid of a sales forecast.
Watch Yannick Peterschmitt, Head of SAP S/4HANA Enablement and SAP S/4HANA Product Success interviewing me about Planning Strategies. In this Expert Talk you will learn about the most frequently once used, the new master data MRP selection guide that was launched with the SAP S/4HANA Cloud 2202 release, configuration settings and how alternative planning strategies can be applied in a business setting.
Now it’s time for you to implement the right planning strategies for your demand program needs. For further discussions on planning strategies, please leave your comments or questions.
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