Explanation
The stock determination strategy is a set of rules that defines how the system selects a suitable stock for a material requirement. To use a stock determination strategy for a material in management, some prerequisites are needed. First, a stock determination rule must be assigned to the business transaction in Customizing. This rule specifies which stock types and special stocks are allowed for the transaction. Second, a stock determination rule must be customized and assigned to the storage type. This rule defines the sequence in which the system searches for available stock within the storage type. Third, a cross-application strategy for stock determination must be customized. This strategy determines how the system selects a storage location and a batch for the material requirement. The other options are not prerequisites, as they are optional or not related to the stock determination strategy. References: [SAP Help Portal], [SAP Community]