Production Order demand

Production Order demand is the anticipated number of specific finished goods needed for a specific period. The production schedule is driven by the Production Order demand.

The Production Order demand is created in three ways:

• Document demand allows you to 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 Order 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 as they are needed contribute to the Production Order demand only occasionally.

  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 need to verify if any finished goods have dropped below their reorder point and need to be replenished. This allows them to calculate what the available quantities are based on the current stock-on-hand, minus allocated, picked, and backordered quantities, plus on-order and intransit 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 Order demand based on sales from the last three years. This forecast demand is then interfaced into the Production Order application.

This flowchart shows the demand sources.