What is planning strategy in SAP PP?

Companies typically employ make-to-order, make-to-stock or a variant/hybrid of the aforementioned strategies to manufacture their products. Planning strategy is part of the Demand Management component of SAP PP that determines the planning strategy used by a specific material. Some of the strategies include make-to-stock production (10), make-to-order production (20), planning with final assembly (40) and subassembly planning (70)