- SAP PP Tutorial
- SAP PP - Home
- SAP PP - Introduction
- SAP PP - Common Tables
- SAP PP - Organization Structure
- Integration with Other Modules
- SAP PP - Master Data
- SAP PP - Bill of Materials
- SAP PP - Work Center
- SAP PP - Routing
- SAP PP - Demand Management
- SAP PP - Creating PIR
- Material Requirement Planning
- SAP PP - MRP List
- SAP PP - Long Term Planning
- SAP PP - Production Orders
- SAP PP - Production Order Change
- Production Order Confirmation
- Canceling Production Order
- SAP PP - Capacity Planning
- SAP PP - Capacity Leveling
- SAP PP - Goods Receipt
- SAP PP - Stock Overview
- SAP PP - Goods Issue
- SAP PP - Goods Issue Reversal
- SAP PP - Lean Manufacturing
- SAP PP - Reports
- SAP PP - Material Document List
- Stock of Multiple Materials
- List in Bill of Material
- SAP PP Useful Resources
- SAP PP - Questions Answers
- SAP PP - Quick Guide
- SAP PP - Useful Resources
- SAP PP - Discussion
- Selected Reading
- UPSC IAS Exams Notes
- Developer's Best Practices
- Questions and Answers
- Effective Resume Writing
- HR Interview Questions
- Computer Glossary
- Who is Who
SAP PP - Demand Management
In SAP PP, demand management is performed by Planned Independent Requirement (PIR). Planned Independent Requirement provides input for production planning. A PIR contains one planned quantity of product and one date for material or a planned quantity is split over a span of time period.
To set your PIR version active, use the value 00 to specify the requirement would be considered in material requirement planning. To maintain the number of versions of PIR, you can set some numbers to active and others to inactive.
PIR defines the planning strategy in material master, which determines the planning methods - make to order and make to stock.
In Make-to-Stock environment, PIRs are used where stock is built based on the forecast and not on sales order.
Planning strategies are divided into two categories −
Make-to-Stock Planning Strategy
This is a planning strategy where the stock is produced without sales order. It is used to meet the customer demands in future.
When you use Planning strategy 10, only PIR quantity is considered for MRP run and sales order is completely ignored. In this PIR, the requirement type is LSF and is reduced when you deliver stock to the customer.
When you use Planning strategy 40, for MRP run a maximum of 2 PIR and Sales order can be considered, and PIR is reduced when you enter the Sales order. In this case, the requirement type is VSF.
Make-to-Order Planning Strategy
In this planning strategy, the finished products are not produced until you receive the sales order from a customer. For MRP run, you only consider Sales order.
In MTO strategy, you only produce sales order, stock and products are delivered as per sales orders from a specific customer.
You use Planning strategy 20 for MTO process and planning strategy 25 is used to produce product variants when there is a request for variant products from the customer.