Defines whether additional orders for any related components are calculated. This includes production orders that are created manually or from sales orders and production order proposals that are generated by planning calculations.
Additional Information
You can select from the following manufacturing policy options.
| Manufacturing policy | Description | ||
|---|---|---|---|
Make-to-Stock | Considers the first level of the BOM and allows only one item per production order. A make-to-stock item is produced to inventory levels. These are typically standard items with a relatively short manufacturing lead time or items that are used as required subassemblies for other items. You generally use this manufacturing policy with fixed reorder quantity or maximum quantity reorder policies. | ||
Make-to-Order | Explodes the BOM and creates an additional production order 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. If you make multilevel production orders, then the manufacturing policy for the parent item and the component items at all levels must be make-to-order. An automatic reservation is created between the requirement and the corresponding replenishment order proposal. This preserves the customized information on the relevant orders and links them for inventory and costing. You generally use this manufacturing policy with order or lot-for-lot reordering policies.
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