The "Advanced Planning" flag is a specific master data setting in SAP S/4HANA that designates an object as relevant for advanced planning functionalities, such as the embedded Production Planning and Detailed Scheduling (PP/DS). This checkbox must be activated for the master data to be considered by the advanced planning engine. This flag is explicitly located in the Material Master (on the "Advanced Planning" tab) and in the Work Center master data (on the "Basic Data" tab). Activating this flag is a prerequisite for transferring these objects to the planning environment.

B. Plant: Advanced planning is activated for a plant in customizing, but the plant master data object itself does not have a specific "Advanced Planning" flag.

C. Production version: A production version's relevance for advanced planning is derived from its associated material. It does not have its own independent "Advanced Planning" flag.

1. SAP Help Portal, SAP S/4HANA 2023, "Material": In the prerequisites section for integrating material master data with PP/DS, the documentation states: "On the Advanced Planning tab page, you have set the Advanced Planning indicator. You have thus specified that the material is relevant for advanced planning." (This confirms option D).

2. SAP Help Portal, SAP S/4HANA 2023, "Work Center": The documentation on integrating work centers as resources for PP/DS specifies: "In the work center on the Basic Data tab page, you have set the Advanced Planning indicator. The system then automatically creates a resource." (This confirms option A).

3. SAP Help Portal, SAP S/4HANA 2023, "Production Data Structure (PDS)": This document explains that a PDS is generated from production versions for materials that are relevant for advanced planning. It states, "The prerequisite for the generation of a production data structure is that the material for which the production version was created is assigned to an active integration model." The material's relevance is determined by the flag in the material master, not on the production version itself. (This clarifies why option C is incorrect).

In SAP S/4HANA, when managing component substitutions within a Bill of Material (BOM), the "Alternative Item Group" functionality is used. This feature provides specific strategies for material withdrawal in production. The two primary strategies are:

1. 100% check (Strategy 1): The system attempts to cover the total required quantity with a single component from the group. It checks the availability of the items sequentially based on their defined priority and usage probability until it finds one that can fulfill the entire requirement.

2. Manual maintenance (Strategy 2): Also known as "Manual selection," this strategy requires user intervention. During the goods issue or backflush process, the system presents the list of alternative components, and the user must manually select which item and quantity to consume.

A. First in first out (FIFO): This is an inventory valuation method or a stock removal strategy in warehouse management, not a BOM alternative item strategy.

B. Simultaneous: This is not a standard strategy for alternative item withdrawal in an SAP BOM. The system processes alternatives sequentially or via manual choice.

1. SAP S/4HANA Help Portal, "Alternative Items": This official documentation outlines the functionality of alternative item groups. It states, "You can define a strategy for withdrawing alternative items from stock... Strategy 1: The system tries to meet the material requirements with one material... Strategy 2: The user has to select the material during the backflush process." This directly supports "100% check" and "Manual maintenance/selection". (Path: SAP S/4HANA -> Product Assistance -> Enterprise Business Functions -> Logistics -> Production Planning and Control (PP) -> Basic Data (PP-BD) -> Bills of Material (BOMs) (PP-BD-BOM) -> Alternative Items).

2. SAP S/4HANA Help Portal, "Creating an Alternative Item Group": This document details the fields used to configure alternative items. For the "Strategy" field (technical name: AISTR), it specifies the available entries: '1' for a 100% check based on usage probability and '2' for manual selection. This confirms the two valid strategies. (Path: SAP S/4HANA -> Product Assistance -> ... -> Bills of Material (BOMs) (PP-BD-BOM) -> Alternative Items -> How to Create an Alternative Item Group).

The Capacity Scheduling Table, as part of the Detailed Scheduling (DS) Planning Board in SAP S/4HANA PP/DS, provides several interactive planning strategies for schedulers. "Find slot" is a function that searches for the next available time slot on a resource to schedule an operation. "Close gap" is a strategy used to optimize resource utilization by moving scheduled operations forward to the earliest possible time, thereby eliminating or reducing idle time (gaps) on the resource. Both are standard, executable functions available to the planner.

B. Planning mode > Bucket: "Bucket" refers to a method of viewing or planning capacity in discrete time intervals (e.g., days, weeks), not an executable scheduling strategy within the interactive table.

D. Planning mode > Order priority: Order priority is an attribute of a planned or production order. It serves as an input for sequencing rules within automated heuristics or optimization, not a planning strategy executed directly by the user.

1. SAP S/4HANA Help Portal, Production Planning and Detailed Scheduling (PP/DS), Detailed Scheduling, DS Planning Board, Functions for Scheduling in the DS Planning Board: This official documentation details the interactive functions available.

For "Close Gaps": The section "Rescheduling Functions" describes the "Close Gaps" function, which moves operations to the earliest possible date to close idle times on a resource.

For "Find Slot": The section "Scheduling Functions" describes the "Find Slot" function, which allows the planner to find a free time slot for an operation, either forwards or backwards in time.

2. SAP S/4HANA Help Portal, Production Planning and Detailed Scheduling (PP/DS), Heuristics, Planning Mode: This documentation clarifies that "Planning Mode" is a setting for heuristic runs that determines how the system treats existing procurement proposals (e.g., delete and recreate vs. change existing). This confirms it is a different concept from the interactive strategies in the question.

To make master data relevant for embedded PP/DS (Advanced Planning) in SAP S/4HANA Cloud, you explicitly mark the individual object with the “Advanced Planning” indicator.

• Material master (MRP 4 view) – ticking “Advanced Planning” tells the system that the product is to be planned by PP/DS.

• Work center (Basic Data / Scheduling view) – the same flag converts the work-center into a PP/DS resource.

Plants are activated for PP/DS only in customizing, not by a flag inside the plant master, and production versions contain no “Advanced Planning” indicator; they become PP/DS-relevant automatically if their material and work center are flagged.

C. Plant – PP/DS is switched on for a plant in SPRO IMG (PP-DS Customizing), not in the plant master; no “Advanced Planning” field exists there.

D. Production version – contains no “Advanced Planning” checkbox; PDS generation is controlled by the material/work-center flags.

1. SAP Help Portal, SAP S/4HANA 2022 → Manufacturing for Planning and Scheduling → Integrating Product Master Data, section “Advanced Planning Indicator” (help.sap.com, page ID: SAPS4HANA2022EN, §2.1).

2. SAP Help Portal, same guide → Integrating Work Centers as Resources, “Field: Advanced Planning” (§3.1).

3. SAP Note 2525601 “Advanced Planning in SAP S/4HANA – Required Settings”, point 3 “Material Master” and point 4 “Work Center” (18 Apr 2023).

4. openSAP course “PP/DS in SAP S/4HANA” (course E2EPLN5, Week 2 Unit 3), video timestamp 02:25-03:40 and 05:10-06:00 (demonstrates setting the indicator in material and work center).

The scenario requires a pure make-to-order (MTO) process for the finished product, as forecasting is explicitly not possible. Planning Strategy 20 (Make-to-Order Production) is the standard SAP strategy for this, where production is triggered directly by a sales order.

The different procurement methods for the components are controlled by the Individual/Collective indicator in the MRP 4 view of each component's material master. To procure one component individually for the sales order, its indicator is set to '1' (Individual). To procure the other component jointly for plant stock, its indicator is set to '2' (Collective).

A. Planning strategy 50 is a make-to-stock (MTS) strategy that requires forecasting (Planned Independent Requirements) for the finished product, which the scenario prohibits.

B. The Mixed MRP indicator is used to define if a material's requirements are planned collectively even in an MTO scenario, but the primary control for components within a BOM is the Individual/Collective indicator.

C. This option is incorrect because planning strategy 50 requires forecasting, and the Mixed MRP indicator is not the correct control for differentiating component procurement types within a single BOM.

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).

The system's decision to create a planned order versus a purchase requisition during an MRP run is primarily determined by two master data fields. The Procurement Type (field MARC-BESKZ) in the material master's MRP 2 view is the main indicator. A setting of 'E' (in-house production) or 'X' (both) leads to planned orders. A setting of 'F' (external procurement) typically leads to purchase requisitions.

However, for externally procured materials, the MRP Group (field MARC-DISGR) assigned in the MRP 1 view can override this default behavior. The MRP group contains a specific parameter ("Create purchase req.") that allows a planner to define whether MRP should create purchase requisitions directly, only within the opening period, or always create planned orders first.

B. Material type: This controls general attributes like valuation and which views are available for a material, but not the specific type of MRP procurement proposal.

C. MRP type: This determines the planning procedure (e.g., MRP, consumption-based planning), which dictates if and how a material is planned, not the resulting proposal type.

1. SAP S/4HANA Documentation, "Procurement Type": "The procurement type determines whether a material is produced in-house, procured externally, or both... For materials with procurement type F (external procurement), the planning run creates purchase requisitions." (This establishes the primary role of the Procurement Type).

Source: SAP Help Portal, S/4HANA 2023, Material Master (LO-MD-MM) -> Material Master Data -> MRP Data -> Procurement Type.

2. SAP S/4HANA Documentation, "MRP Group": "In the MRP group, you can maintain the parameter Create purchase requisition... With this parameter, you can control for materials that are procured externally whether the planning run is to create purchase requisitions or planned orders."

Source: SAP Help Portal, S/4HANA 2023, Production Planning and Control (PP) -> Material Requirements Planning (PP-MRP) -> MRP-Specific Material Master Data (PP-MRP-MD) -> MRP Group.

3. SAP S/4HANA Documentation, "Creation of Procurement Proposals": "For materials procured externally, the system can create either planned orders or purchase requisitions... You can override this setting in the MRP group for the material. The setting in the MRP group has a higher priority."

Source: SAP Help Portal, S/4HANA 2023, Production Planning and Control (PP) -> Material Requirements Planning (PP-MRP) -> MRP Run (PP-MRP-PR) -> Planning Process -> Creation of Procurement Proposals.

A production order can be created using several methods in SAP S/4HANA. One method is to create an order without a material (Transaction CO07). This is typically used for special cases like rework, repairs, or creating prototypes where a standard material master record is not applicable. Another method is through the Kanban process. In a pull-based replenishment strategy using Kanban, when a container's status is set to "empty," the system can be configured to automatically generate a production order as the replenishment element to produce the required quantity.

A. A purchase requisition is a formal request for external procurement and is converted into a purchase order, not an in-house production order.

C. Order release is a processing step that occurs after a production order has been created. Releasing an order authorizes its execution on the shop floor.

1. SAP S/4HANA Help Portal - Creating a Rework Order: This document explains the process of creating a production order without a material for rework purposes. It states, "You create a production order without a material to be manufactured... You create the rework order manually." This confirms the validity of creating an order without a material. (Source: SAP S/4HANA Official Documentation, Production Orders (PP-SFC)).

2. SAP S/4HANA Help Portal - Replenishment Using Production Orders (Kanban): This official documentation details the Kanban process. Under the "Prerequisites" section for in-house production, it specifies that a production order type must be defined for Kanban. The "Process Flow" section describes how changing the Kanban status to EMPTY triggers the creation of a production order. (Source: SAP S/4HANA Official Documentation, Kanban (PP-KAB)).

3. SAP S/4HANA Help Portal - Order Release: This document describes the function of releasing an order. It states, "The release of an order is the prerequisite for... printing shop floor papers, withdrawing material, [and] entering confirmations." This positions release as a step subsequent to creation. (Source: SAP S/4HANA Official Documentation, Production Orders (PP-SFC)).

4. SAP S/4HANA Help Portal - Conversion of Purchase Requisitions: This document outlines the procurement process, stating, "The purchasing department is responsible for converting purchase requisitions into purchase orders." This confirms that purchase requisitions lead to purchase orders for external procurement. (Source: SAP S/4HANA Official Documentation, Sourcing and Procurement).

The Material Requirements Planning (MRP) net requirement calculation determines material shortages by balancing total requirements against available supply. The basic formula is: Net Requirements = Gross Requirements - (Available Stock + Planned Receipts).

Both Production orders and firmed Planned orders are considered fixed receipt elements. They represent a committed supply of material that will be available on a specific date. MRP includes these quantities in the "Planned Receipts" portion of the calculation, thereby reducing the net requirement that needs to be covered by new procurement proposals.

C. Planned orders (unfirmed): Unfirmed planned orders are the result of a previous MRP run. During a new planning run, they are not treated as fixed receipts but are instead deleted and recreated based on the current situation.

D. ATP quantities: The Available-to-Promise (ATP) quantity is the output of a separate availability check, typically used in sales order processing. It is not a direct input element for the MRP net requirement calculation.

1. SAP S/4HANA Product Assistance, "Net Requirements Calculation": This official documentation details the elements used in the calculation. It explicitly lists "Production orders" and "Firmed planned orders" as fixed receipt elements that are taken into account. It also clarifies that unfirmed planned orders are deleted and replanned.

Source: SAP Help Portal, S/4HANA -> Enterprise Business Applications -> Manufacturing -> Production Planning and Control (PP) -> Material Requirements Planning (PP-MRP) -> MRP Planning Process -> Checks in the Planning Run -> Net Requirements Calculation.

2. SAP S/4HANA Product Assistance, "Planning Process": This section outlines the MRP run steps, stating that the system first calculates net requirements and then, in a second step, creates procurement proposals (like unfirmed planned orders) to cover these requirements. This confirms that unfirmed planned orders are an output, not an input to the calculation.

Source: SAP Help Portal, S/4HANA -> Enterprise Business Applications -> Manufacturing -> Production Planning and Control (PP) -> Material Requirements Planning (PP-MRP) -> MRP Planning Process.

The consumption of Planned Independent Requirements (PIRs) by other requirements, such as sales orders, is governed by settings in Demand Management. The Planning Strategy, assigned in the material master record (MRP 3 view), is the primary determinant. It defines the high-level logic, including the consumption mode (e.g., backward, forward) and the consumption period. Secondly, the Requirements Type of the consuming requirement (e.g., the sales order) is crucial. The requirements type is linked to a requirements class, which contains a specific 'Consumption' indicator that controls whether that requirement is allowed to consume PIRs. Both elements work together to ensure forecasts are accurately adjusted by actual demand.

A. Order type: The sales order type is a Sales & Distribution (SD) configuration that influences sales document processing but does not directly control the PIR consumption logic.

B. Requirements profile: This is not a standard SAP configuration object used to control the consumption of planned independent requirements in this context.

1. SAP S/4HANA Help Portal, "Consumption of Planned Independent Requirements": This official documentation states, "The settings that control consumption are the following: ... Consumption mode, Consumption period, Requirements type of the customer requirements, Planning strategy." This directly confirms that both the planning strategy and the requirements type are the key determinants. (Accessed under Production Planning for Goods and Services -> Demand Management -> Planned Independent Requirements (PIRs) -> Consumption of Planned Independent Requirements).

2. SAP S/4HANA Help Portal, "Requirements Classes": This document details the configuration of a requirements class, which is assigned via the requirements type. It explicitly describes the "Consumption" field (technical name VSEKZ) within the requirements class settings, which specifies how consumption is to be carried out for the requirement. (Accessed under Controlling -> Product Cost Controlling -> Cost Object Controlling -> Sales-Order-Based Controlling -> Control of Sales-Order-Based Controlling -> Requirements Classes).

3. SAP S/4HANA Help Portal, "Planning Strategy": This documentation explains that a planning strategy is a procedure for planning a material and is a key integration point between Production Planning (PP) and Sales & Distribution (SD). It clarifies that the strategy determines how sales orders consume planned independent requirements. (Accessed under Production Planning for Goods and Services -> Demand Management -> Demand Management Methods -> Planning Strategy).

The duration of a production operation is calculated using data from both the routing and the work center. The routing specifies the sequence of operations and contains the standard values for each operation, such as setup time, machine time, and labor time. The work center, where the operation is performed, contains the formulas in its scheduling tab. These formulas use the standard values from the routing and the operation quantity to calculate the exact execution time, capacity requirements, and costs. Therefore, both master data objects are essential for determining an operation's duration.

B. Material master: The material master's "Work Scheduling" view contains the total in-house production time, which is an aggregate value, not the duration for a specific, individual operation.

D. Production version: A production version is a link that determines which Bill of Material (BOM) and routing to use for a specific material. It does not contain the time values itself.

1. SAP S/4HANA Help Portal - Routings: "In an operation, you enter standard values. These are planned values for the execution of an operation... The system uses the standard values in formulas in the work center together with the operation quantity to calculate the execution time, capacity requirements, and costs of an operation." (Source: SAP Help Portal, S/4HANA 2023, Routings (PP-BD-RTG), Section: Standard Values).

2. SAP S/4HANA Help Portal - Work Centers: "On the Scheduling tab page in the work center, you enter data that the system uses for scheduling operations... You can enter a formula for each standard value that is used to calculate execution time, capacity requirements, and costs." (Source: SAP Help Portal, S/4HANA 2023, Work Centers (PP-BD-WKC), Section: Scheduling Data in the Work Center).

3. SAP Learning - Course TS422 (SAP S/4HANA Production - Planning): The course materials detail that operation duration calculation is a function of the standard values maintained in the routing operation details and the formulas defined in the assigned work center's capacity and scheduling views. (Source: SAP Training Course TS422, Unit: Master Data, Lesson: Routings and Work Centers).