Hello everyone,
I am currently working on a customer case where we are evaluating the use of Sales and Operations Planning (S&OP) in an environment based on Make-to-Order (MTO) and MS Level 1 parts.
The customer is using Demand Planner, and the forecast is transferred directly to MS Level 1, which is then used for production and procurement planning. They do not use MS Level 0 parts in their current process, as all planning is based on real, sellable items.
When analyzing S&OP, we see that it can technically work with MS Level 1 data (forecast and supply). However, setup screens such as Product Family Master still do not take an MS Level 1 part.
The customer’s goal is to use S&OP mainly to compare unconstrained demand vs constrained operations plan and to support capacity evaluation (RRP), without modifying the original forecast.
Could you please clarify:
- What is the recommended approach for using S&OP in an MTO setup based on MS Level 1?
- Is the MS Level 0 part still required only as a technical object (e.g. for Product Family), or is it expected to be part of the planning flow?
- Are there best practices for defining Product Families in this type of scenario?
Any guidance or examples from similar implementations would be greatly appreciated.
Thank you in advance!
Best regards,
Pavel K.