A production order is an order issued within a company to produce a specific quantity of material within a certain timeframe. A production order may be issued pursuant to a
sales order
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The sales order, sometimes abbreviated as SO, is an order issued by a business or sole trader to a customer. A sales order may be for products and/or services. Given the wide variety of businesses, this means that the o ...
, and its issuance triggers a number of events. If components in the
bill of materials
A bill of materials or product structure (sometimes bill of material, BOM or associated list) is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts, and the quantities of each needed to manufacture an end ...
are in stock, reservations are generated for those items; if they are not in stock, then
requisition order
Requisition may refer to:
*Purchase requisition, a document issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services
*Requisition in military logistics
*Requisition of property by a government under e ...
s may be generated. Requisition orders may also be generated for production that occurs externally to the firm. Planned costs for the order are also generated and capacity requirements are generated for the
work center
Work may refer to:
* Work (human activity), intentional activity people perform to support themselves, others, or the community
** Manual labour, physical work done by humans
** House work, housework, or homemaking
** Working animal, an animal tr ...
s. It is mostly used in trading.
References
Production and manufacturing
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