Which planning strategy supports the consumption of planned independent requirements for the semi-finished material?

You want to trigger in-house production of a semi-finished material before a sales order for the corresponding finished good is received.

Which planning strategy supports the consumption of planned independent requirements for the semi-finished material?
A . Planning with final assembly (40)
B . Production by lot size (30)
C . Planning at assembly level (70)
D . Make-to-order production (20)

View Answer

Answer: A

Explanation:

Planning with final assembly (40) is a planning strategy that supports the consumption of planned independent requirements for the semi-finished material. This strategy is used when the production of the finished product is triggered by the sales order, but the production of the semi-finished product is not. The semi-finished product is produced in advance based on the forecast and stored in stock. When the sales order is received, the planned independent requirements for the finished product are reduced by the sales order quantity, and the planned independent requirements for the semi-finished product are reduced by the corresponding component quantity. This way, the semi-finished product is consumed by the sales order and the production order for the finished product only requires the assembly of the components. This strategy allows for a shorter lead time and a higher flexibility for the finished product, while reducing the risk of excess stock for the semi-finished product.

Reference: Planning with Final Assembly | SAP Help Portal, Planning Strategies | SAP Help Portal, SAP S/4HANA Production Planning and Manufacturing Certification Guide, page 53-54