# Planning Strategy 40 in SAP PP, with a Worked Example > Source: https://netray.co/erp-help/planning-strategy-40-in-sap-pp-with-example > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: ERP Help ## Short answer Planning strategy 40 is 'planning with final assembly'. You enter planned independent requirements (PIRs) for the finished product, MRP plans the finished product and all components from that forecast, and incoming sales orders consume (reduce) the PIR instead of adding to it. Final assembly is triggered by the sales order, not by the plan, so components are ready but the finished good is not built on spec. ## Kind how-to ## System sap ## Erp SAP ECC / S/4HANA ## Module PP / Demand Management and MRP ## Query planning strategy 40 in sap pp with example ## Alternate Queries - strategy 40 in sap pp with example - planning with final assembly sap - sap strategy 40 make to stock example - how does strategy 40 consume planned independent requirements ## Applies To SAP ECC 6.0 and S/4HANA on-premise (the strategy mechanism in OPPS and MRP group customizing is the same). Make-to-stock style planning with PIRs. ## Steps ### How to set up and run strategy 40 **Items:** In the material master, MRP 3 view, enter strategy group 3 (planning with final assembly, which carries strategy 40 as its main strategy in the standard system). You can also let the MRP group default it. Check the setup in OPPS. Set the MRP 3 consumption fields: consumption mode and the backward and forward consumption periods (these can also come from the MRP group). They decide which PIRs a sales order is allowed to consume. Create the forecast as PIRs with MD61 (or MD81 for a simulative version, MD62 to change). Enter the finished product, plant, version, requirement dates and quantities, for example 100 pcs in each of the next four weeks. Run MRP for the finished product and its components with MD02 (total planning) or MD03 (single item). In S/4HANA you can also use MD01N. Open MD04 for the finished product. You should see the PIR lines (LSF) and planned orders created to cover them. Enter a customer order with VA01 for the finished product. Check MD04 again: the order shows as a customer requirement and the PIR is reduced by the consumed quantity. Rerun MRP. Planned orders for the finished product are not duplicated for consumed quantity, because the sales order has used up the plan. Convert the planned order to a production order (CO40, MD04, or COHV for mass processing) when the order is firm. ## Sections ### Worked example: PIR of 100, sales orders of 30 and 90 **Body:** Product FG-100 is planned with strategy 40. Demand Management holds a PIR of 100 pcs for week 20, the finished product has no stock, and its bill of materials has two components, C1 (1 per unit) and C2 (2 per unit). MRP creates a planned order for 100 pcs of FG-100 in week 20, and dependent requirements of 100 pcs of C1 and 200 pcs of C2. Components are therefore procured or produced in advance, which is the whole point of the strategy: delivery time is short because only final assembly remains. A sales order arrives for 30 pcs in week 20. It consumes 30 from the PIR, so the open PIR is 70 and total requirements of the finished product stay at 100 (70 PIR plus 30 customer requirement). Nothing changes for the components. A second order for 90 pcs consumes the remaining 70 of the PIR, and the other 20 pcs are added on top, so total requirements become 120 and MRP creates an extra planned order for 20 pcs and more component demand. This is the key behavior: a sales order bigger than the plan is not lost, it simply increases demand. **Code:** - Week 20, before orders: PIR 100 total 100 (planned order 100) - After order 1 (30 pcs): PIR 70 + SO 30 total 100 (no change) - After order 2 (90 pcs): PIR 0 + SO 120 total 120 (extra planned order 20) ### How consumption decides what happens **Body:** Consumption is controlled by the consumption mode and the two periods. In the common backward-then-forward setting, a sales order first looks for PIRs dated before its requirement date within the backward period and then for PIRs dated after it within the forward period. If the periods are zero, only a PIR on the same day is consumed, which is the usual reason people say 'my PIR is not being consumed'. Because consumption happens in Demand Management, you can see it in MD04 and in the requirements evaluation of the PIR (MD63 shows the PIR with its reduction). If the sales order requirement type or the planning strategy do not match the PIR requirement type, there will be no consumption at all, and demand will simply double. ### Strategy 40 compared to 10 and 50 **Body:** Strategy 10 (net requirements planning) builds the finished product to the PIR and treats sales orders as plain demand against stock; the PIR is not reduced by orders. Use it for pure make to stock. Strategy 40 is for cases where you want the plan to be consumed by real demand, so the total never exceeds the larger of plan and orders per consumption period. Strategy 50 (planning without final assembly) plans only the assemblies and leaves final assembly entirely to the sales order, which makes sense for products with many variants. Strategy 40 fits when the finished product is common enough to forecast, but you still want an order to trigger assembly to avoid overbuilding. ## Pitfalls - PIRs dated outside the backward and forward consumption periods are never consumed, so the plan and the orders add up and you overbuild. - A finished product with the wrong strategy group (or strategy group missing) falls back to default planning with no consumption. - Running MRP only for the finished product leaves component planning out of date; use total planning or planning with the dependent items. - Using a PIR version that is not active (version number or active flag) means MRP ignores it. Check the active indicator in MD62. - Changing the PIR after the planned orders are converted does not change the production orders. Re-plan before converting. ## Ai Angle Most strategy 40 problems are 'why is my demand double' questions that need a person to compare PIR dates, consumption periods and MD04 lines. An assistant grounded in your SAP data (ERPray, read-only and role-aware, runnable on-prem) can read the PIRs, sales orders and planned orders for one material, show the query it used, and explain which PIR a given order consumed or why it did not. It never changes the plan. Planners still decide the fix. ## Faq ### What is planning strategy 40 in SAP? **Answer:** Strategy 40 is planning with final assembly. Planned independent requirements for the finished product drive MRP, which plans the product and its components. Sales orders consume the PIR instead of adding on top, so total demand follows the larger of plan or orders. ### Is strategy 40 make to stock or make to order? **Answer:** It is a make to stock style strategy with consumption. The finished product is planned to forecast, components are procured ahead, and sales orders reduce the forecast. Pure make to order uses strategies like 20 or 50 where sales orders alone drive production. ### Why is my PIR not reduced by sales orders? **Answer:** Usually the consumption periods are zero, the PIR is in a different version or has a different requirement type, or the material has no strategy group with consumption. Check the MRP 3 view consumption fields and the MRP group first. ### Which transactions do I need for strategy 40? **Answer:** MD61 to create PIRs, MD62 to change, MD63 to display, MD02 or MD03 to run MRP, MD04 for the stock and requirements list, VA01 for sales orders and OPPS to see the strategy definition. ## Search terms planning strategy 40 in sap pp, strategy 40 in sap pp with example, planning with final assembly sap, sap pir consumption, sap consumption mode strategy 40, md61 planned independent requirements, sap strategy group 3, sap mrp strategy 40 vs 10, sap demand management consumption, sap make to stock strategy --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json