1. SAP S/4HANA Help Portal, "Make-to-Order Production (20)": This document states, "This strategy is a typical make-to-order strategy... Planned independent requirements are not relevant for this strategy." This confirms that Strategy 20 is appropriate when forecasting is not possible.
2. SAP S/4HANA Help Portal, "Individual and Collective Requirements": This official documentation specifies, "You use this indicator [Individual/Collective] to specify for a component whether it is to be planned as an individual requirement or as a collective requirement... If you want to plan a component as an individual requirement, you must set the indicator to 1... If you want to plan a component as a collective requirement, you must set the indicator to 2." This directly supports using this indicator to fulfill the component-level requirements.
3. SAP Learning Course Material, TS422 (Production Planning in SAP S/4HANA): Unit 4, "Make-to-Order Production," details the use of Strategy 20 for sales-order-driven production. The same unit explains how the Individual/Collective indicator in the component material master (MRP 4 view) determines whether dependent requirements are managed in sales order stock (individual) or plant-available stock (collective).