Hi Murtazaali233,
Period--If the required ship day of the item in SOs is within the value set by ‘period (day)’, system will generate one planned order.
Requirement—System create every new planned order for every requirement after running MRP.
Max/min--Set minimum and maximum inventory levels.
If the stock is expected to be below the minimum, a planned supply order will be generated to restore the inventory to its maximum value.
Manual--Usually used to stock items that are not purchased frequently.
Usually, you also need to pay attention to value of ‘negative day’ and ‘positive day’.
Negative day considers the planned receipt days for sales orders. Negative days allow for delayed supply to meet the demand.
Positive day limit the number of days to generate planned PO. The number of positive day is the number of days to use the existing stock before generating a new planned purchase order.
You can test different setting parameters in test environment and check the difference between them.
Regards,
QianQW
