Make-to-Stock Production (10/11 ) : As the name implies, Make-to-Stock Production is a strategy that utilizes forecasts as the basis to drive production of end items and components. It is particularly useful for mass production environments. Make-to-Stock Production is defined in SAP as two different Planning Strategies, 10 and 11. They differ in the way they treat Available Stock. Planning Strategy 10 will consider Stock (net requirements planning) while Planning Strategy 11 will not (gross requirements planning).
Make-to-Order Production (20/ 21/ 25/ 26) : As the name implies, Make-to-Order Production is strategies that utilize Sales Orders as the basis to drive production of end items and components. These strategies are useful when production orders need to be directly linked to sales orders. The differences between the several MTO strategies are combinations of how costs are settled (in all cases to Sales Orders versus stock) and the degree with which configuration of the Sales Order (for a configurable material) is required. Strategies 20 and 21 do not allow configuration, 25 requires it, and 26 makes it optional.
Production by Lot Size for Sales and Stock Orders (30) : This strategy is particularly useful for companies that mainly produce for major customers but who also require the option of selling smaller requirements from stock. Several sales orders, depending on the dates, can be grouped together to be produced in one single lot. In addition to the recognition of Sales Orders, this strategy will also plan to cover Planned Independent Requirements like the Make-to-Stock Strategy.
