Make to Stock: In MTS scenario you can start the production with Planned

independent requirements (from MD61...forecast demand without reference to

customer)...much before you receive the sales orders from customers..,leter you can
deliver this from warehouse to sales orders. This type of scenario you can use for
the industries where they have constant demand for thier products in all seasons
and products are not changed frequently and also they want to meet the requirements
immediattely to delight the customers.

For this you have use approperaite planning strategies in MRP3 view for the
finished parts (example 10, 11, 30, 40, 60 etc).

Make to Order:

In MTO you are working against the customer demands (sales orders). Planning and
production will be carried out when you get the actual demand from SD (sales
orders)... This type of scenation exists in the induatries where lot of products
being manufactured and they changed fron one customer to another customer.

Example: Paint industry where you will be having 3000 sheds of colours and each
customer comes with thier own requiremnt. You cannot work here with MTS.

Products will be manufactured exclusively for the particular customer and you
cannot switch the stock of one customer to anothe customer.

make to stock scenario :

the production process is not triggered by the sales order,usually products are
manufactured based on the past sales forecats.

You should always use make-to-stock production if you produce stock independently
of orders because you want to provide your customers immediately with goods from
that stock later on.

You might even want to produce goods without having sales orders, if you expect
that there might be customer demand in the future.

This means that make-to-stock strategies can support a very close customer-vendor
relationship because your objective here is to provide your customers with goods
from your stock as quickly as possible.

Returns that have passed quality inspection and other unexpected goods receipts can
be used for other sales orders.

configuration depends upon the customer requirments because due to that

1.the strategy group (materrial master ) is decided

2. lot size

3.requirment class

Make-To-Stock Production

Purpose

We describe the planning of a product for make-to-stock production. After

requirements planning, you analyze the stock situation and convert a planned order
into a production order. You also enter a sales order that is not relevant to the
planning. The production order is then released and saved. After the material
withdrawals and confirmation of the operations, you analyze the production
variances. The sales order is delivered and settled.

Process Flow

1. Planning a Product

T.code: MD61

Logistics  Production  Production Planning  Demand

Management  Planned Independent Requirements  Create

2. Creating a Sales Order

T.code: VA01

Logistics  Sales and Distribution  Sales  Order 
Create

3. Executing Multi-Level Requirements Planning

T.code: MD02

From the MRP node, choose Planning  Single Item - Multi-Level

4. Converting the Planned Order into a Production Order

Tcode: MD04

From the MRP node, choose

Evaluations  Stock/Reqmts list

5. Withdrawing the Material for the Production Order

T.code: MB1A

Logistics  Materials Management  Inventory Management 

Goods Movement  Goods Issue

6. Confirming the Production Order

T.code: CO11N

Logistics  Production  Production Control  Confirmation

 Enter  For Operation  Time Ticket

7. Creating a Delivery

T.code: VL01N

Logistics  Sales and Distribution  Shipping and Transportation

 Outbound Delivery  Create  Single Document  With
Reference to Sales Order

8. Creating a Billing Document

T.code: VF01
Logistics  Sales  Billing  Billing document  Create