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Make-to-stock production (10) is a planning strategy that supports the production of a finished good based on a forecast and without any reference to sales orders. This strategy is used when the finished good has a stable and predictable demand, and the company wants to maintain a certain level of safety stock to meet customer orders. If customers order more than the forecasted quantity, this does not affect the production program, as the system does not generate any additional planned orders or purchase requisitions for the finished good. Instead, the system reduces the planned independent requirements by the sales order quantity, and the excess demand is covered by the safety stock or the available stock. This strategy allows for a smooth and continuous production process, and avoids frequent changes in the production plan. References: Make-to-Stock Production | SAP Help Portal, Planning Strategies | SAP Help Portal, SAP S/4HANA Production Planning and Manufacturing Certification Guide, page 52.

 Planned independent requirements (PIRs) are demand elements that represent the sales or production program for a material. They are used to plan the production or procurement of finished products or assemblies in advance, based on the expected demand from customers or internal sources. Some benefits of planning with PIRs are:

• Reduced delivery times: By planning with PIRs, you can ensure that the required materials and capacities are available when the actual sales orders arrive. This reduces the lead time for fulfilling the customer orders and improves the delivery performance.
• Option to forecast planning for production resources: By planning with PIRs, you can use forecasting methods to estimate the future demand for a material based on historical data and trends. This allows you to adjust the production or procurement plan accordingly and optimize the utilization of production resources, such as machines, labor, and materials. References: [Production Planning with SAP S/4HANA], page 144; [SAP Help Portal: Planned Independent Requirements].

Heuristics are planning functions that execute planning for selected objects, such as products, resources, operations, or line networks, using a specific procedure. Heuristics are used in interactive planning, the SAP S/4HANA Digital Core MRP_live or in the Advanced Planning (PP/DS) production planning run. In the Advanced Planning, you can execute several heuristics, which belong to both production planning and detailed scheduling, for the same products in one planning run. Heuristics can help you to solve planning problems for defined objects, such as creating feasible production plans, scheduling operations, assigning resources, or leveling capacities. Heuristics can also consider various constraints and parameters, such as lead times, lot sizes, setup times, priorities, or alternative modes12.

References:

• 1: SAP Help Portal: Heuristics
• 2: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 4: Advanced Planning

You can create a production order using the following methods:

• Create by order release: You can create a production order by releasing a planned order in the material requirements planning (MRP) run. The system converts the planned order into a production order and assigns a production order number. You can use the Manage Production Orders app or the transaction CO40 to create production orders by order release.
• Create in Kanban process: You can create a production order in the Kanban process, which is a lean manufacturing method that uses pull signals to trigger production. The system creates a production order when a Kanban status changes from EMPTY to WAITING. You can use the Kanban Board app or the transaction PK13N to create production orders in the Kanban process. References: SAP Help Portal, Manage Production Orders in SAP S/4HANA Manufacturing