🎯 Objective:

Combine Make-to-Stock (MTS) and Make-to-Order (MTO) approaches efficiently:

• Strategy 40: Do demand planning at the PIR level, then adjust with actual sales orders.
• Sub-Strategy 20: Use pure MTO if stock is not available, triggering production only for confirmed sales orders.

With Advanced Planning, these strategies benefit from constraint-based planning, finite scheduling, and improved pegging.

🛠️ Step-by-Step: How It Works

✅ 1. Demand Planning (PIRs)
| Tcode | MD61 |

• Maintain Planned Independent Requirements (PIRs) for FG/SFG.
• PIR drives MTS production to keep stock ready for expected demand.

✅ 2. Sales Order Entry
| Tcode | VA01 |

• Customer order is created.
• In Strategy 40, sales order consumes PIR.
• Net requirement = PIR minus Sales Orders → reduces MTS portion.

✅ 3. Requirements Planning Run
| Tcode | MD02 / MD01N |

• MRP run considers both PIRs and Sales Orders.
• Unconsumed PIR triggers planned orders for stock.
• Sales Order portion ensures final assembly aligns with real demand.

✅ 4. PP/DS Activation
| Tcode | /SAPAPO/CDPS0 |

• With PP/DS active, planned orders are now capacity-constrained.
• Detailed scheduling ensures finite resources, leveling overloads.

✅ 5. Pegging Relationships

• System creates pegging links between Sales Orders and planned orders.
• Ensures real-time tracking: which portion is for stock, which is for a specific customer.

✅ 6. Sub-Strategy 20 Behavior

• If PIR = 0 or customer orders exceed PIR, system treats excess demand as pure MTO.
• No stock is used; system triggers discrete production for that Sales Order.

✅ 7. Order Conversion & Execution
| Tcode | CO40 / CO41 |

• Planned Orders are converted to Production Orders.
• Execution is scheduled based on finite capacity in PP/DS.

✅ 8. Delivery Fulfillment

• Sales Orders are delivered from available stock first (MTS).
• Excess is produced via MTO to fulfill remaining quantity.

📊 Reporting & Monitoring

ReportTcodePurposeStock/Req ListMD04View pegging between PIR, Sales Orders & planned ordersPP/DS Planning Board/SAPAPO/CDPS0Visualize resource loads, pegging & schedulesPegging Overview/SAPAPO/PEGIPPEDetailed pegging relationships in PP/DS

📂 Key Tables

TableDescriptionPBIMIndependent RequirementsVBAPSales Order ItemsAUFKProduction Order Master/SAPAPO/PPEGPP/DS Pegging Data

✅ Conclusion

Strategy 40 with Sub-Strategy 20 lets manufacturers combine forecast-driven stock production and customer-specific production.
When Advanced Planning is active, it ensures finite scheduling, constraint-based planning, and clear pegging — helping you balance forecast accuracy, inventory costs, and customer satisfaction.