Hello
A planned order is created with both 2 and 3.
The difference between both is that selection method 3 will only select according to the production version. If there is no valid production version, the BOM is not exploded.
With selection method 3, system still tries to find a valid BOM, even if the PV is not valid.
If you are not using lead time scheduling on the MRP, the master recipe will not even be read by the planned order.
BR
Caetano