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📌 What is SAP Planning Strategy 50?

Strategy 50 — Planning Without Final Assembly (Make-to-Order with Planning)

• Strategy 50 is a hybrid MTO (Make-to-Order) approach where you plan production at the assembly level, but the final product is made only when you receive a Sales Order.
• You use forecast (PIRs) to plan subassemblies or components, but no finished goods are produced until there’s an actual order.
• It’s great for products with many variants where final specs are confirmed only after order receipt.

🏭 Where to Use It?

• When you want shorter lead times for make-to-order items by pre-producing semi-finished parts.
• Common in Assemble-to-Order (ATO) or Engineer-to-Order (ETO) scenarios with variant configuration.
• Example: automotive manufacturing, machinery, or configurable laptops — subassemblies like engines, frames, or motherboards are forecasted, but final build waits for the order.

🔍 How It Works:

AspectStrategy 50PIRsYes — for subassemblies/componentsSales OrdersTrigger final assemblyFinished GoodsNot stocked in advanceBenefitCombines forecast efficiency with true make-to-order customization

✅ How It Differs from Other Strategies:

Strategy 40 (Planning w/ Final Assembly)Strategy 50 (Planning w/o Final Assembly)PIRsFinished productSubassemblies/components onlySales OrdersReduce forecastTrigger final assemblyInventoryFinished goods stockedSubassemblies stocked; final build is order-basedUse CaseStandard MTS with adjustmentVariant-rich MTO with planning

🗂️ Example Scenario:

An industrial equipment company forecasts components like motors and gearboxes. When an order is received with unique specifications, only then are those components assembled into the final machine.

✅ Key Setup in SAP:

• Material Master → MRP 3 View → Strategy Group = 50
• Requirements Type: VSF for PIRs at assembly level
• Sales Orders: Pass real demand to final assembly stage
• BOM must be correctly structured — subassemblies vs. final product

⚙️ Key Tcodes:

• MD61 → Maintain PIRs (subassemblies)
• VA01 → Create Sales Order
• MD02 → Run MRP
• MD04 → Check Stock/Requirements

✅ Takeaway:

✔️ Strategy 50 is perfect when you need Make-to-Order flexibility but still want to plan ahead for lead-time-critical parts.
✔️ It helps balance forecasted supply with customer-specific demand.

💡 Pro Tip:

• Always check that PIRs do not create stock for final products — only for subassemblies.
• Make sure your MRP run respects the BOM levels properly.