Strategy 10 - PIR Type - LSF

• Net requirements planning. That is even the warehouse/storage location stock is also taken into account besides planned receipts / issues during planning for calculating the order quantity. Planned Independence Requirement quantity is reduced at the time of Goods Issue for delivery.

• Gross requirement planning. Warehouse / storage location stock is not considered, and only planned receipts / issues are considered. Also Planned Independent Required quantity is reduced during Goods Receips for production / planned order (Repetitive).  It is generally recommended for mass production industries and process oriented industries where the production has to be carried on, regardless of the stock available. The constraint in such industries is that it is not economically viable / possible to stop production.

•  Maintain the following master data for the finished product:
• Strategy group 30 on the MRP screen
• Availability check field (on the MRP screen and the Sales: General/Plant screen) so that you can perform an availability check with replenishment lead times (01 in the standard system)
• Item category group (for example, NORM) on the Sales Organization screen

• Planned Independent Requirements will be reduced by sales order delivery to reflect the current  stock requirement. (depending on your configuration, sales order will consume the VSF (planned independent requirement) quantity on the same date or two to three days away from it)
• You can set up the consumption parameters in the material master on the MRP screen.
• Check whether the fields Consumption mode, Bwd consumption, Fwd consumption contain entries. If empty, default values are taken from the MRP group parameters in Customizing. If these fields are filled in the material master, they override the MRP group parameters.
• In MD04, VSF will disappear once it is consume by the sales order

4.6c
• Choose Logistics -> Production -> Master Planning -> Demand Management -> Evaluations -> Display total requirements. (The Total Requirements List shows only those sales orders that have reduced the independent requirements.)

• The lot size key EX must be set in the MRP screen because lot size optimization would be incompatible with the allocation logic, which could result in over-planning and incorrect result in the ATP check.
• You also must ensure that no rounding profile or rounding values are taken into account.
• Maintain consumption parameters (Consumption mode, Bwd consumption, Fwd consumption) so that the independent requirements can be found. For more information, see Consumption Strategies and Logic.
• Maintain the item category group (for example, NORM) on the Sales Organization screen.
• A BOM is required for the finished product. There are no major implications for the BOM components. However, it is important to note the following:
• You need to set the MRP type to P* (or M*) on the MRP screen to plan the components in MRP.
• You may want to consider setting the Individual/coll. Indicator to 2 on the MRP screen as a starting point for your master data setup.

Set Ind./Coll. Indicator to 2 in MRP4 View for all your lower level components. It allows you to build or purchase some components only after receipt of the sales order.

SAP PP Reference Books:
SAP Production Planning , Configuration, Interview Questions and Certification, Books

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