Production planning

es_barrett

Would you expect for an Item that is setup with a production forecast - to have the following item setup;
- Manufacturing Policy = Make-to-Stock
- Reordering Policy = Fixed Reorder Qty.
- Reorder Point = 30,300
- Reorder Quantity = 7,800

I have been asked to look at an end-user's setup and this looks odd to me.
I would think that if sales demand for an item is variable for each month - and a production forecast (sales) exists - that these planning parameters would not be necessary.

sorenhinrup

You would use a production forecast, when your planning horizon is longer than your sales horizon. That way you will be able to plan your production on an estimated sale in the future.
I don't see any issues with the setup stated here.
Your production forecast will deduct the actual sales when planning.

sorenhinrup

You would use a production forecast, when your planning horizon is longer than your sales horizon. That way you will be able to plan your production on an estimated sale in the future.
I don't see any issues with the setup stated here.
Your production forecast will deduct the actual sales when planning.