Question

In: Operations Management

What is a Production Plan? What is a Production Order? What are the differences between them?...

What is a Production Plan?

What is a Production Order?

What are the differences between them? Please be detailed in your response.

Solutions

Expert Solution

1.

Production planning is the planning of production and manufacturing modules in a business or enterprise. It uses the resource allocation of actions of workers, supplies and production capacity, in order to serve several consumers.

2.

A production order is an order announced within a business to provide a particular quantity of supply within a set timeframe. A production order may be dispensed following to a sales order, and its issuance triggers a number of functions.

3.

Planned orders are results of running MRP. Shortages of materials that are set to internal procurement will create planned orders, which can be converted into production orders. ... For repetitive, the planning is much simpler, you basically run MRP against your demand and you get planned orders. A production order determines which supply is to be prepared, at which place, and at what time and how much amount is required. It also determines which elements and series of operations are to be utilised and how the order expenses are to be resolved. Planned orders are consequences of operating MRP.

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