Understanding Strategy 10: Net Requirements Planning in SAP PP

Strategy selection is a crucial step in Production Planning (PP) within SAP. It dictates how your system calculates production requirements. Today, we’ll delve into strategy 10, known as Net Requirements Planning.

What is Strategy 10?

Strategy 10 is a make-to-stock (MTS) planning strategy. This means a pre-determined plan drives production independent of individual sales orders. It’s ideal for mass production environments with predictable demand, like those in the fast-moving consumer goods (FMCG) industry.

Here’s what makes Strategy 10 unique:

• Production based on Plans: Sales orders don’t directly influence output. Instead, the system relies on a Production Plan (PP) or manually entered Planned Independent Requirements (PIRs) to determine what needs to be produced.
• Focus on Net Requirements: Only the net difference between stock on hand and planned demand is considered for production.
• Sales Orders Reduce PIRs: When a sales order is fulfilled, the corresponding PIR is reduced accordingly.

Why Use Strategy 10?

There are several advantages to using Strategy 10:

• Demand Smoothing: Allows for smoothing out fluctuations in demand, leading to more stable production plans.
• Focus on Forecasts: Enables better planning based on forecasts rather than reacting to individual orders.
• Simplified MRP: Streamlines the Material Requirements Planning (MRP) process by excluding the complexities of order-driven production.

Controller Data Configuration

To implement Strategy 10, you’ll need to configure specific master data for your finished products:

• Strategy Group 10: Assign strategy group 10 to the material master data in the MRP data view for the plant.
• Standard Item Category Group: In the Sales: Sales Org 2 view, select a standard item category group for the material.
• Availability Check without Replenishment Lead Time: Set the availability check field in MRP 3 view to “ST” to consider only existing stock without lead times.

Who Should Use Strategy 10?

Strategy 10 is a good fit for companies that:

• Manufacture for stock with predictable demand patterns.
• Make sure individual sales orders are consistent with production plans.
• Prioritize a streamlined MRP process.

Examples of Use Cases

• Production of everyday consumer goods like beverages, packaged foods, and toiletries.
• Manufacturing of standard industrial components with consistent demand.

In Conclusion

Strategy 10 offers a robust approach to production planning in SAP PP for MTS scenarios. By understanding its core functionalities and configuration steps, you can leverage this strategy to optimize production plans, smoothen demand fluctuations, and simplify your MRP process.