SAP Make-to-Stock Practical Guide for Efficient Manufacturing

Published by : BELMACHIA Alaaeddine

Publication date : 21 December 2025

In this article :

Grasping the Essentials of Make-to-Stock

Exploring Planning Approaches in Make-to-Stock

Configuring Core Data for Make-to-Stock

Handling Demand in Make-to-Stock

Running Material Requirements Planning in Make-to-Stock

Preparing Production Orders in Make-to-Stock

Carrying Out Production in Make-to-Stock

Managing Stock in Make-to-Stock

Connecting with SAP Modules in Make-to-Stock

Navigating Common Hurdles in Make-to-Stock

In SAP environments, make-to-stock production focuses on preparing inventory in advance based on demand forecasts, allowing quick fulfillment without depending on incoming customer orders. This method suits scenarios with consistent demand for standard products, enabling manufacturers to maintain ready stock for immediate shipping. Within SAP, it primarily operates through the Production Planning (PP) module, connecting closely with material requirements planning and stock handling processes. Across various sectors like consumer products or vehicle components, this setup supports rapid order processing and client satisfaction by minimizing wait times. From a consulting perspective, implementing this for international operations involves careful calibration to avoid excess inventory or supply gaps, drawing on real-world configurations to keep everything running efficiently.

Grasping the Essentials of Make-to-Stock

Make-to-stock (MTS) serves as a fundamental approach in SAP for manufacturing items to fill warehouse stock according to anticipated needs. It differs from make-to-order methods, which start production only after a specific client request arrives. Instead, MTS uses past sales information and projections to guide output volumes. In SAP S/4HANA systems, this involves demand management features to establish planned independent requirements (PIRs), which outline the production targets. For example, in a facility producing soft drinks, consultants might set up forecasts for upcoming months considering historical patterns and event-based increases, leading to batch runs that stock shelves independently of individual purchases.The strength of MTS lies in managing uniform products with reliable demand patterns. During implementations for food industry clients, this has proven effective for everyday essentials like preserved foods, where slight overproduction prevents lost revenue from unmet orders. SAP facilitates this via configurations in the material master record, designating materials for MTS-based planning. This setup connects directly to warehouse operations, ensuring completed items are immediately available for distribution. Consultants prioritize inventory equilibrium, as high levels can strain finances while low ones risk delays in fulfillment. In an electronics implementation, regular forecast updates helped adapt to economic changes, keeping storage costs under control.MTS integrates well across SAP modules, supporting cost monitoring at the item level through financial linkages, which streamlines overall reporting. It often pairs with repetitive production techniques for large-scale operations, such as building electronic boards in continuous cycles. Here, the focus remains on steady workflows without interruptions from unique specifications. Starting with precise data foundations, like bill of materials (BOM) and operation sequences, is essential for seamless execution. Recent SAP enhancements include advanced data insights that identify consumption trends, allowing MTS to adapt more dynamically to market conditions.Further into operations, MTS accommodates reverse flows like returned goods or surplus arrivals without complexity. When items return from inspections, they re-enter inventory for resale, requiring minimal adjustments unless quality issues demand fixes. This adaptability benefits high-turnover areas like everyday consumer items, where automated restocking rules have been configured to maintain levels. Ultimately, mastering MTS involves seeing how SAP converts projections into practical manufacturing steps, promoting efficient and prepared supply chains.

Exploring Planning Approaches in Make-to-Stock

SAP provides multiple planning options for MTS, each designed to fit specific demand situations, and selecting appropriately drives operational success. Strategy 10, known as net requirements planning, is commonly used, with material requirements planning (MRP) deducting available stock and expected inflows from projected needs. In furniture production settings, this ensures raw material purchases cover only actual deficits, reducing unnecessary acquisitions.Strategy 11, or gross requirements planning, overlooks current inventory to provide a complete outlook, ideal for restarting planning cycles fresh. In chemical processing engagements, this approach was applied to volatile bulk items, guaranteeing coverage of full forecasts regardless of fluctuating holdings. Strategy 40, planning with final assembly, secures parts ahead but completes products based on confirmed sales, as seen in bicycle assembly where frames and tires are prepositioned but joined nearer to shipment, lowering stored finished product volumes.Strategy 30 emphasizes lot-based production for optimal batch sizes. For snack packaging operations, this means executing runs in predefined quantities to cut down on changeover durations, such as producing set numbers per shift. These strategies are assigned in the material master's MRP sections, tied to demand tools for PIR handling. In practice, blending strategies occurs frequently, like employing 52 for component stocking without full make-to-order ties, where lower-level parts are inventoried ahead of final steps.The progression in each strategy includes PIR setup in demand management, early sourcing, order assignment, and material dispatch. Strategy 63 leverages a central planning item to consolidate variant demands, useful for customizable goods like vehicles with add-ons. Automotive projects have shown this reduces complexity by avoiding detailed per-option predictions. Testing in development systems is vital; one transition from strategy 10 to 40 notably decreased storage expenses through postponed completion.Such options make MTS adaptable rather than rigid. They work within MRP processes to produce convertible planned orders. For textile businesses, strategy 11 supported seasonal highs by incorporating buffers through slight overprojections. In newer S/4HANA versions, built-in analysis tools help refine these choices by highlighting adjustment opportunities from current information.

Configuring Core Data for Make-to-Stock

Core data forms the foundation for MTS in SAP, and proper setup prevents later issues in the chain. Begin with the material master using transactions MM01 or MM02, applying MRP type PD for structured planning. Include a strategy group such as 10 to direct the system toward PIR-driven replenishment. In consumer tech setups, this was tailored for audio devices, incorporating lot size indicators like EX to align with equipment limits.Next, define BOMs through CS01, specifying parts and amounts. In MTS, these expand during MRP to calculate needs, so precision is critical. For computer builds, the BOM covers displays, inputs, and power sources, potentially with variant probabilities. Routings, created via CA01, outline steps, resources, and durations, connected to costing for reliable evaluations in production contexts.Work centers, set in CR01, detail capacities and calculation methods for timing. For ongoing MTS flows, enable backflushing to automatically record part usage. Food handling configurations defined centers for blending and wrapping, matching capacities to expected outputs. Supplier records and purchasing details manage outsourced elements when internal making isn't feasible.Include location specifics in the material master for tracking holdings. When linked to advanced warehouse systems, this extends to precise placement controls. Consistency is emphasized, with grouping via classification for similar items. Global deployments utilized bulk updates in MM17 to handle extensive catalogs efficiently.MRP view safety stocks address variability, adjusted according to desired availability rates. For time-sensitive goods like seasonal items, quarterly revisions kept buffers appropriate. Sourcing groups and allocations secure supply paths. Strong core data ultimately leads to dependable MRP outputs, transforming predictions into feasible actions without frequent corrections.

Handling Demand in Make-to-Stock

Demand handling propels MTS by converting projections into PIRs. Transaction MD61 allows entry of periodic quantities for end products. In drink manufacturing, monthly figures are entered drawing from prior sales, modified for campaigns.The system supports breakdown flags to refine PIRs from broad to detailed intervals, such as weekly splits. In strategy 40, these initiate part acquisitions without committing to complete builds. Monitoring through MD73 verifies totals against real orders, as done in appliance projects to catch inflated estimates and curb excess.Sales linkage occurs via reduction, where new orders diminish PIRs in approaches like strategy 10, maintaining focused inventories. The MD04 display shows these effects clearly. For varied products, strategy 63 aggregates via planning items, easing management for sets like furnishings.Models in MP00 automate PIR creation from records. Recent updates incorporate predictive elements for better accuracy. Long-term planning (LTP) in MS01 enables scenario testing offline. Pharmaceutical implementations used this for steady generic supply, preventing deficits.Routine tweaks in MD62, including group modifications, handle large sets effectively. Team coordination, often through connected systems, is key. In MTS, demand processes require ongoing oversight to stay aligned, matching output to actual requirements without surplus.

Running Material Requirements Planning in Make-to-Stock

MRP activates MTS by assessing shortages and proposing solutions. Execute via MD01 for individuals or MD02 for groups, with NETCH focusing on alterations. Strategy 10 nets PIRs minus holdings to form planned orders for gaps.During runs, BOM breakdown generates part demands. Auto supplier planning covered wheels and motors from vehicle estimates. Lot optimization uses settings like FX for consistent batches fitting production setups.Timing uses reverse scheduling from due dates for punctuality. Textile configurations included delays for coloring stages. MD05 lists outcomes, flagging adjustments needed.In layered setups, MRP cascades requirements through levels. Strategy 40 separates build planning, sourcing upfront. Area divisions in MRP allow site-specific handling, such as distinct storage zones.S/4HANA offers demand-driven MRP for fluctuations, though traditional fits standard MTS. MD03 simulations verify setups. Parameter refinements in one case reduced sourcing lags significantly.Collective oversight in MD07 spots issues early. Purchasing ties convert needs to orders. This maintains steady MTS stock movements without breaks.

Preparing Production Orders in Make-to-Stock

After MRP outputs planned orders, transform them into production orders using CO41 for batches or CO40 singly. MTS orders target general stock, independent of sales links. Repetitive cases employ MF50 for schedule lines.Order release in CO02 incorporates capacity reviews. Leveling in CM21 distributes workloads across resources. Packaging operations avoided overloads during busy times through this.Types like PP01 control discrete MTS behaviors. Setup includes milestone tracking. Customizations in implementations enabled threshold-based releases.Planned details transfer quantities, timelines, and elements. Conversion reserves materials, securing availability. Machinery assemblies benefited from this organized approach.Shop floor integration provides oversight via charts. Modern applications like order management tools ease handling. Precision here avoids discrepancies in later stages.

Carrying Out Production in Make-to-Stock

Production begins with issuing materials to orders, using MFBF backflush in repetitive modes. CO11N confirms steps, noting durations and outputs. Food lots tracked from preparation to enclosure this way.Partial records support active processes. Scrap entries correct production figures. Discrete finalization in CO15 initiates receipt.Documentation from CO04N directs staff. Manufacturing execution system links add live monitoring. Engineering adjustments mid-process are handled via production engineering and operations.Post-completion variances are assessed after technical close. Costs settle to inventory. Automation like sensor inputs in rollouts minimized mistakes.COOIS overviews aid supervision. This phase constructs MTS inventory effectively for market readiness.

Managing Stock in Make-to-Stock

Following output, MIGO receipts add to holdings. MTS builds free-use stock. Inventory tools monitor levels.MB1B transfers relocate items. MICN counting upholds precision. Heavy storage setups used categorizations for focus areas.Order reserves block overuse. Lot tracing via batches is vital in regulated fields like drugs.Warehouse module links manage placements. Extended systems speed decentralized actions. Min/max thresholds prompt refills.Slow item reports via aging highlight adjustments. MTS stock directly reflects projections, with surpluses indicating forecast refinements.

Connecting with SAP Modules in Make-to-Stock

MTS ties to Sales and Distribution (SD) for pulling from stock. Orders verify availability through available-to-promise (ATP) checks. Strategy 40 activates builds on confirmation.Materials Management (MM) handles part buying from MRP suggestions. Purchase orders (POs) form accordingly. Financial postings occur at intake.Quality Management (QM) checks during runs, isolating defects. Integrations created automatic inspections in projects.Controlling (CO) compares real costs to plans. Process industry adaptations in PP-PI suit MTS.Module interactions promote unity. Global configurations ensure uniform information across sites.

Navigating Common Hurdles in Make-to-Stock

Excess predictions cause overstock; regular PIR checks mitigate this. Retail supply alignments monthly lowered expenses.Fluctuating needs require careful buffer use. Thorough testing closes connection gaps.Variant overloads are managed by grouping items. Training reduces confirmation mistakes.High-volume scaling uses scheduled MRP. Upgrades with intelligent forecasting assist.Tackling these sustains MTS effectiveness, aiding professional advancement in SAP roles.