It matters during the Master planning. Based on the demand Master planning engine generates either purchase orders/production orders for the items to meet the demand.
Item X which is procured by external supplier, we keep the default order type - purchase order. Master planning engine generates a PO to meet the demand
Item Y which is produced in house, we keep the DO type - Production order. MP engine generates Production order.
Hello Krisheed,
When your item belongs to a coverage group (meaning that the item requirements wil be calculated by the MRP) and your default order type is purchase, a planned purchase order will be generated when necessary.
If the default order type is production a planned production order will be generated when necessary.
This after the Master schedule run ofcourse.
Kanban I do not know.
Regards,