SAP has many different demand planning strategies that can be used to plan and stock components. For example, in the passenger car division a plan with final assembly strategy is usually used because it is flexes to make the higher of the forecast or customer call offs. But in the commercial vehicle division it is common to use a planning strategy which plans without final assembly. Commercial vehicle divisions usually have a higher product mix with lower volumes per finished good. In a plan without final assembly strategy, you hold stock at the sub assembly level and “finish off” just prior to the customers’ requirement. That way, you can hold less stock and still meet the changing needs of your customer.
SAP has standard, integrated supply chain capability and functionality using a combination of planning strategies, product hierarchies, and scheduling agreements that can help manufacturers get visibility of these complexities and develop viable supply proposals to meet the demand signals provided.
For this type of customer we recommend using a true make to stock planning strategy so that the demand is solely the forecast and his sales requirements are not taken into account. This is particularly useful when the monthly volume is equal to your production line capacity; you simply cannot make any more than you’ve forecasted.