This planning strategy is particularly useful for planning BOMs that contain variant as well as non-variable parts.
The important feature of this strategy is that you can procure non-variable components on the basis of planning in Demand Management. Production of the finished product is based on actual sales orders. This procedure ensures that you can react quickly to customer requirements even if the finished product has a long overall lead time. You can avoid the main value-added process until you have a customer.
This strategy allows you to plan the variants of one product. The term variant indicates "similar" parts; it is not used in the sense of variant configuration, which implies a much higher number of variants. With this strategy, for example, you can easily exchange a component in all similar BOMs.