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Hi All
I have run planning worksheets with the two options under manufacturing policy field but the results are the same. What's the point of this field as make to order is actually determined using "reordering policy" set to order rather than this field.
That is correct. It could be used for filtering purposes at that point.
so is it accurate to say that if a company only has single level production BOMs with raw materials only - so no nested BOMs - then setting the manufacturing policy of the finished good to 'make to order' would never have any effect?
Excellent explanation thanks for that
If your parent Item is set to "Make-to-Order" and the components (sub-assemblies) are set to "Make-to-Order" the system will allow for nesting the child on the parent's Production Order. Meaning you get one Production Order with multiple Lines.
So while your Planning Worksheet results look the same, the Ref. Order No. has changed. If either parent or child is set to "Make-to-Stock" you will see two Production Orders suggested. If both are set to "Make-to-Order" you will only see one Production Order suggested.
As mentioned before the system will cycle down through all levels of nested "Make-to-Order" sub-assemblies and add them as additional lines on the Parent Item's Production Order.
This is assuming there is a supply need. For example, you could have a "Lot-for-Lot" Reorder Policy on one of the sub-assemblies with a Order Multiple. This could mean you have enough of the Sub-Assemblies left in stock and don't need to make those Subs on the Parent Item. This might be a little weird to see as a setup choice, but a very possible situation.
Hi,
The manufacturing policy option defines which additional orders the MRP calculation will propose.
If the /Make to stock option is used, the orders concern only the item in question.
If the Make to order option is used, the planning system will analyze the production BOM of the item and create additional linked order proposals for those lower-level items that are also defined as make-to-order. This continues as long as there are make-to-order items in the descending BOM structures.
Regards,
Alok Kulshreshtha
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