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CONFIGURATION WORKBENCHDesign forecast-driven common-stock replenishment and prove the customer promise

MTS 404 · AT THE KEYBOARD

Make to Stock Configuration Workbench

Configure how expected demand becomes common stock, how production feasibility is proven, how shared supply becomes an explainable customer promise, and how actual sales feed the next planning cycle.

Workbench rule

Settings are not evidence. MTS is complete only when forecast demand generates explainable supply, executable production, common stock, customer confirmation, and a consistent replanning result after actual sales consume the forecast.

GOLDEN-PATH PLANNING STRATEGY

Strategy 40 — Planning with Final Assembly

This guide uses Strategy 40 as the minimum reference scenario. Other MTS strategies remain valid but have different forecast-consumption and planning behavior; do not generalize Strategy 40 to every MTS design.

PIR / Forecast→MRP→Planned Supply→Production→Common Stock→Sales Order→PIR Consumption→ATP

MTS MENTAL MODEL

Forecast, plan, produce, stock, promise, consume, replan

Use this forest-before-the-trees view before opening the configuration workbench chapters.

FORECAST
What do we expect to sell?
→PLAN
What supply is required?
→PRODUCE
Can that supply actually be made?
→STOCK
What common inventory now exists?
→PROMISE
What can we commit to customers?
→CONSUME & REPLAN
What actual demand replaced forecast?

P2M BOUNDARY

MTS is a scenario overlay on production capability

P2M explains how production is configured and executed. MTS adds the planning and inventory strategy that causes production to occur before customer-specific demand.

P2M PRODUCTION CAPABILITY

BOM → Routing → Production Version → Production Order → GI → Confirmation → GR

MTS DEMAND / INVENTORY STRATEGY

Forecast → MRP → Common Stock → Sales Consumption → ATP

MTS EXECUTION

Forecast-driven production into common stock. Use P2M for deep production-order configuration.

STRATEGY EXTENSIONS

Keep Strategy 40 as the proof path, not the whole catalogue

Other make-to-stock strategies are valid design variants and should be selected deliberately.

STRATEGY 10

Net Requirements Planning.

STRATEGY 11

Gross Requirements Planning.

STRATEGY 30

Production by Lots.

STRATEGY 40

Planning with Final Assembly.

OTHER VARIANTS

Use only where required by the approved business design.

01

MTS CONFIGURATION WORKBENCH

Planning scope and strategy

Why are we producing before the customer order?

Core controls

Plant and, where required, MRP Area; material strategy group; PIR ownership; Strategy 40 reference behavior; optional strategy variants.

Decide and configure

  1. Use plant-level planning as the minimum scenario and add a separate MRP Area only when a requirement-driven planning scope justifies it.
  2. Treat MRP-area design as an architectural planning decision; do not activate it casually in an existing productive landscape.
  3. Select Strategy 40 / Planning with Final Assembly as the golden path and document any Strategy 10, 11, 30, or other variant as an extension with different behavior.
  4. Confirm the material/plant strategy group, requirements type/class, PIR version, planning horizon, and owner of forecast release.
PROOFThe material has a declared MTS strategy and a dated PIR that can drive planning at plant level, while MRP Area remains optional and design-dependent.
FIRST CHECKS

Material/plant, MRP views, strategy group, PIR date/version, requirements determination, planning file, plant parameters, and whether MRP Area is truly required.

02

MTS CONFIGURATION WORKBENCH

Planning-policy dependency chain

Why did MRP create this quantity and date?

Core controls

Demand, MRP Type, net-requirement logic, lot-sizing rule, procurement type, special procurement, safety stock, planning time fence, lead times, and supply proposal.

Decide and configure

  1. Show the causality explicitly: Demand → MRP Type → Net Requirement → Lot-Sizing Rule → Procurement Type → Supply Proposal → Quantity + Dates.
  2. Keep overlays separate: Safety Stock, Planning Time Fence, Lead Times, and Special Procurement can shape the result without being the demand signal.
  3. Run PIR → MD01N / MRP Live → Planning Result → MD04 / relevant planning view → Planned Order as the practical S/4 locator path.
  4. Use the MRP result to explain coverage, not manufacturing feasibility or customer confirmation.
PROOFMD01N / MRP Live creates an explainable planned order whose quantity and date can be traced to demand, netting, lot size, procurement type, and lead-time assumptions.
FIRST CHECKS

Demand validity, stock and receipts, MRP type, lot size, procurement type, special procurement, safety stock, time fence, lead times, calendars, firming, and MD04 exceptions.

03

MTS CONFIGURATION WORKBENCH

Forecast consumption and replanning

How does actual demand replace forecast?

Core controls

PIR, sales order, consumption mode, backward/forward consumption periods, remaining forecast, transfer of requirements, and replanning.

Decide and configure

  1. Use Strategy 40 as the proof behavior: PIR → MRP Supply → Sales Order Arrives → PIR Consumption → Remaining Forecast → Replanning.
  2. Explain that actual sales demand replaces the corresponding forecast requirement according to configured consumption behavior.
  3. Do not imply that sales orders create extra demand on top of an already-consumed forecast where the selected strategy is intended to consume PIRs.
  4. Test early, late, partial, and excess demand against one forecast bucket and rerun MRP after consumption.
PROOFFor Forecast / PIR = 100 and Sales Order = 30, the planning view shows 30 actual demand plus 70 remaining forecast, followed by an explainable replanning result.
FIRST CHECKS

Strategy 40 versus the selected strategy, requirements type/class, consumption mode/windows, PIR dates, sales-order dates, schedule line, transfer of requirements, and remaining forecast.

04

MTS CONFIGURATION WORKBENCH

Production version and executable supply

Can that supply actually be made?

Core controls

Material, BOM, Routing, Production Version, Planned Order, Production Order, capacity/scheduling check, component availability, GI, confirmation, GR, and common stock.

Decide and configure

  1. Elevate the dependency: Material → BOM + Routing → Production Version → Planned Order → Production Order.
  2. Use Production Version as the link between the executable BOM/routing combination used by planning and production.
  3. Keep the distinction visible: MRP asks whether demand can be covered by quantity and date; Capacity asks whether work centers can actually execute that plan.
  4. Prove MRP Proposal → Capacity / Scheduling Check → Executable Supply before treating the planned order as a feasible production plan.
PROOFThe planned order selects the expected production version, converts to a production order, passes the required feasibility checks, and receives finished goods into common stock.
FIRST CHECKS

Production version validity, BOM/routing status, lot-size range, work center capacity, scheduling, component availability, order type, release status, GI, confirmation, GR, and stock status.

05

MTS CONFIGURATION WORKBENCH

ATP and customer promise

What can we commit to this customer now?

Core controls

Checking Group, Checking Rule, Scope of Check, available supply, receipts, requirements, confirmed quantity/date, and extension-only aATP functions.

Decide and configure

  1. Keep MRP and ATP separate: MRP asks whether we have or plan enough supply; ATP asks what can be promised to this customer now.
  2. Configure Checking Group + Checking Rule → Scope of Check → Confirmed Quantity / Date as a separate proof from MRP coverage.
  3. Core ATP is Product Availability Check, Checking Group, Checking Rule, and Scope of Check. Treat Product Allocation, Backorder Processing, Alternative-Based Confirmation, and Supply Protection as extension / scope-dependent topics.
  4. Test available, short, blocked/restricted, competing-demand, and date-change cases after PIR consumption.
PROOFA sales order consumes the intended PIR where Strategy 40 applies, and ATP independently returns an explainable confirmed quantity/date from eligible common supply.
FIRST CHECKS

Checking group/rule/scope, included stock and receipts, requirements, plant, stock status, existing commitments, allocation/backorder extension use, schedule line, and transfer of requirements.

06

MTS CONFIGURATION WORKBENCH

Inventory policy and compact accounting

What common stock exists, why, and does Finance agree?

Core controls

Stock policy, customer promise, production-order economics, finished-goods receipt, variance, settlement, excess, ageing, slow/obsolete inventory, and service measures.

Decide and configure

  1. Separate stock policy from customer promise: Safety Stock → Excess → Ageing → Slow / Obsolete Inventory asks how much common stock the business intentionally carries.
  2. Promise from supply separately: Available Supply → ATP → Confirmed Quantity / Date asks what can be committed to this customer now.
  3. Keep production accounting compact: Component / Activity Cost → Production Order → Finished-Goods Receipt → Common Stock → Variance → Settlement.
  4. Use P2M and R2R for deeper production-accounting, Product Costing, Material Ledger, and period-close configuration.
PROOFCommon-stock quantity/status, forecast consumption, ATP confirmation, production-order cost, finished-goods value, variance, and settlement tell one coherent MTS story.
FIRST CHECKS

Forecast quality, remaining PIR, stock/receipts, safety stock, ATP confirmation, ageing/excess thresholds, component/activity cost, goods receipt value, variance, settlement, and R2R tie-out.

CORE VS EXTENSION

Keep advanced topics outside the minimum MTS spine

The minimum path proves Strategy 40, common stock, ATP, and replanning. Treat adjacent advanced capabilities as deliberate extensions.

CORE

Product Availability Check, Checking Group, Checking Rule, Scope of Check, MRP Live / MD01N, MD04 / relevant planning view, Production Version, common-stock receipt, and compact production accounting.

EXTENSION / SCOPE-DEPENDENT

Product Allocation, Backorder Processing, Alternative-Based Confirmation, Supply Protection, Demand-Driven Replenishment, full S&OP / IBP, PP/DS optimization, repetitive or process manufacturing, full Product Costing, and Material Ledger / Actual Costing.

TRANSPORT / DATA BOUNDARY

Separate settings, governed master data, and planning transactions

CUSTOMIZING

Planning strategy / strategy-group settings, MRP type configuration, lot-sizing configuration, checking-group / checking-rule logic, scope-of-check settings, scheduling / planning parameters, and production-control settings referenced from P2M.

MASTER / GOVERNED DATA

Material, MRP views, Work Center, BOM, Routing, Production Version, PIR, and planning parameters maintained as master data.

TRANSACTION / PLANNING DATA

MRP run, Planned Order, Production Order, Goods Issue, Confirmation, Goods Receipt, Sales Order, ATP confirmation, and inventory position.

NUMERICAL GOLDEN SCENARIO

Prove Strategy 40 with a stress case

Do not keep the proof entirely happy-path. Show forecast consumption, the planning view, new proposal, common stock, ATP result, capacity consequence, and accounting result.

Proof sequence

Forecast / PIR = 100 FG → Run MRP → Planned Supply = 100 → Produce 80 → Common Stock = 80 → Sales Order = 30 → Consume 30 PIR → Remaining Forecast = 70 → ATP Checks Available Supply → Customer Confirmation → Run MRP Again → Replan Remaining Coverage.

Stress case: Second Sales Order pushes demand above available / planned supply. Prove PIR consumption, MD04 demand/supply picture, new MRP proposal, common stock, ATP result, capacity consequence, and accounting result.

FORECAST-ERROR FEEDBACK LOOP

MTS is a closed planning loop

MTS does not end at sales confirmation. Forecast error becomes the next planning signal and must explain remaining or excess stock.

Forecast→Production→Common Stock→Actual Sales→Forecast Consumption→Remaining / Excess Stock→Next Planning Cycle

FOUR-QUESTION RECONCILIATION

Explain the whole loop

The practitioner should be able to answer demand, supply, inventory, and service questions from one chain.

DEMAND

What did we expect versus actually sell?

SUPPLY

What did MRP propose versus what could we produce?

INVENTORY

What common stock remains and why?

SERVICE

What could we promise the customer?

Forecast→Supply Plan→Production→Stock→Sales Consumption→Customer Promise→Replan

PRACTITIONER MNEMONIC

Seven checks before you call MTS configured

FORECAST

What do we expect?

PLAN

What supply is required?

PRODUCE

Can we make it?

STOCK

What common inventory exists?

PROMISE

What can we commit?

CONSUME

What actual demand replaced forecast?

REPLAN

What should happen next?

FINAL PRINCIPLE

One Forecast, One Reconciled Planning Loop

Configuration is complete only when forecast demand can generate explainable supply, executable production, common stock, customer confirmation, and a consistent replanning result after actual sales consume the forecast. Settings are not evidence.

One Forecast→One Explainable Supply Plan→One Common-Stock Position→One Customer Promise→One Reconciled Planning Loop

Shared PP/MRP technical boundary

Use the P2M technical reference for shared MRP, master-data, production-order, execution, costing, transport, and configuration locators. Do not duplicate its PP machinery here.

Use release-specific IMG and apps as the source of truth; transactions and tables are locators, not a configuration sequence or direct-table-maintenance authority.

MTS technical anchors

OPPSStrategy-group configuration and linked consumption design.
MD01NMRP Live locator for the current planning run in the golden path.
MD04Planning view for demand, supply, stock, exceptions, PIR consumption, and proposal evidence.
IMGVerify requirements determination, ATP settings, MRP type, lot sizing, and release applicability.
Open shared P2M reference
READY FOR THE PROJECT?Continue to MTS 505

Apply the forecast-to-common-stock and customer-promise model through design, proof, deployment, and stabilization.

Enter the project