You want to procure your material components based on a forecast for the finished material derived from historical sales. Which planning strategy is appropriate to use?

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Planning without final assembly is suitable for situations where you want to procure material components based on forecasts derived from historical sales data. This strategy allows for the procurement of materials in advance, based on anticipated demand, without waiting for a customer order. It emphasizes the efficient management of inventory levels and the anticipation of customer needs, making it easier to respond to market demands quickly.

Choosing this planning strategy means that components are procured based on expected sales rather than actual orders. This approach is beneficial when dealing with stable demand patterns, as it allows for consolidating production and procurement activities, thus optimizing supply chain efficiency.

The other strategies are less fitting in this scenario. For example, planning with final assembly indicates a process where the final product is assembled only upon receiving specific customer orders, which does not align with a strategy based on forecasted demand. Production by lot size typically focuses on planning production runs based on defined lot sizes rather than forecasting, and make to order production directly responds to individual customer requirements and is contingent on actual sales rather than forecasts.

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