What is the relevance of individual/Collective Requirement indicator from MRP4 view of material for Finished product as well as its sub assemblies in case of make to Stock planning strategies.
 
Answer:
 
Individual & collective indicator plays a major role in MRP.
 
If you set Individual indicator for both header material and dependent material, then if sale order comes for 100 qty, then During MRP run system will create a plan order with reference to sale order and for dependent material, system will plan dependent material as sale order relevant. System won't consider warehouse stock for that sale order.
 

If you set collective indicator for dependent material system will consider warehouse stock for dependent material.
 
MRP-4 as 1 : In individual planning, this indicator is used to display the dependent requirements of a component separately.
 
MRP-4 as 2 : In collective requirements, this indicator is used to display the dependent requirements of a component grouped together.
 
This Indicator is useful to control the planning of dependent requirements if the main product is being planned with strategy 20 i.e.; MTO Process.
 
 
MARC-SBDKZ indicator controls whether individual or collective customer requirements planning is allowed for dependent requirements means low level in BOM.
 
If you define individual requirements for explosion, dependent requirements for a component are shown individually on the superior low-level code.
 
If you define collective requirements for explosion, required quantities for the material are summarized independently of the sales order.
 
In the MTO scenario, if you want to check the unrestricted raw material stock when you run the MRP for sales order.  Please check by selecting individual/collective requirement as 2.
 
Please note:
 
- If you select individual requirement then system will not consider available stock and generate Proposals for every single requirements.  Also you will find PR and Plan order with account assignment of Sales order (in case of MD50).
 
- If you select collective requirement then system will not generate planning proposals through MD50.  In that case you have to go for individual MRP (MD02 / MD03 / MD41 / MD42).
 
For FG stock you can assign to sales order through MB1B by 412 E movement type.

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