How can you set up a make-to-order planning scenario for a finished material?

When setting up a make-to-order planning scenario for a finished material, it is essential to understand the characteristics of planning strategies in ERP systems like SAP. The correct choice involves the combination of planning strategy 20 and the individual Collective indicator.

Planning strategy 20 pertains to make-to-order production, which means that production is initiated only upon receiving a customer order. This strategy is vital for businesses that require customization or have unique customer demands, ensuring that resources and materials are aligned precisely with actual sales orders rather than forecasted demands.

The individual Collective indicator designates how the order-related planning occurs. With this indicator, the system can efficiently manage stock levels based on individual customer requirements, allowing for precise planning and controlling of inventory specific to each sales order. This practice becomes important in make-to-order scenarios, as it avoids the accumulation of excess inventory and ensures that production is directly tied to demand.

By utilizing this specific combination, companies can create a more responsive and tailored approach to fulfill customer needs, enhancing overall inventory management and reducing waste.