This field defines whether the program will calculate additional orders for any related components. This covers production orders - whether created manually or from sales orders - and production order proposals that are generated by the planning calculations. Click the AssistButton and select one of the following options:
Make-to-Stock
The
program considers just the first level of the bill of materials
(BOM) and allows only one item per production order.
A make-to-stock item is produced to inventory levels. Typically,
these are standard items with a relatively short manufacturing lead
time or items that are used as required subassemblies for other
items.
This manufacturing policy is generally used with the reordering policies of Fixed Reorder Quantity and
Maximum Quantity.
Make-to-Order
The
program explodes the BOM, and creates an additional production
order line (or production order proposal line) for each level in
the BOM structure where that item's manufacturing policy has also
been defined as make-to-order. This means that if you want to make
multilevel production orders, then the manufacturing policy for the
parent item, as well as the component items at all levels, must be
make-to-order.
When you use make-to-order, the program will create an automatic
reservation between the requirement and the corresponding
replenishment order proposal. This will preserve the customized
information on the relevant orders and link them for inventory and
costing purposes.
This manufacturing policy is generally used with the reordering
policy of Order
and
possibly, Lot-for-Lot.