Production order demand

Demand is the number of specific finished goods that are anticipated for a specific period. The production schedule is driven by the Production Management demand.

The Production Management demand is created in these ways:

• Using document demand you can manually create customer orders and requisitions for finished good items that do not have enough product available to satisfy demand.

  For example, the majority of the Production Management demand for the Snow and Sod company, a manufacturer of snow blowers and lawn mowers, is created by customer orders from their three regional offices. Snow and Sod also provides lawn mowers for the Grounds Maintenance department at their three plants. The requisitions for these lawn mowers contribute to the Production Management demand. Document demand can also come from other work orders that use a finished good as a component.

• Replenishment demand allows you to run a batch program that replenishes finished goods.

  Periodically, Snow and Sod's production department must verify if any finished goods have dropped below their reorder point and must be replenished. This allows them to calculate the available quantities that are based on these variables:

  • The current stock on hand
  • Minus the allocated, picked, and back ordered quantities
  • Plus the on-order and intratransit quantities
• Forecast demand allows you to import from an external source or manually create forecast demand.

  Every six months, Snow and Sod forecasts their Production Management demand based on sales from the last three years. This forecast demand is then interfaced into the Production Management solution.