Production Orders

A production order must be created to create an item. Production orders are often created in the ERP based on actual and expected sales orders, available inventory and material requirements planning (the availability and the expected lead time to receive certain required components).

The production order records which item or phantom item will be produced, based on which recipe and how many items will be produced. The recipe can consist of different operations that must be performed on one of the fixed resource types. While planning the production order, it is decided on which machine or work center the operations must take place.

When planning production orders, you can take into account the production employees’ capacity in terms of quantity and required skills by using the integration with the module CRP (Capacity Requirements Planning) in Objective.