Please help There are two queries which are interconnected. 1) What is the difference between Make to Stock and Make to order which are the two options available in Manufacturing policy. As per my understanding, reordering policy are only affecttive if one use make to stock option. If I use make to order then reordering policy does not have any affect. Please confirm. 2)What is the difference between make to order and if I select make to stock along with order in reordering policy. Thanks in advance.
Hi Abhay In the MTO environment you essentially make solely for the requirement. In MTS the reordering policies come into play. In essence you are correct - the MTO should ignore the reorder level, however if you set it up with a fixed reordering policy on MTO then the reorder point will come into play. This is a complex area, and easier to fulfill a requirement you have than explain all permutations. I would advise you play with it and then ask the question - when I set it up in this manner - this happens - why? If you set an item to be MTS and have a reordering policy of Order then you will effectively be making to order, with the only field having relevance being the safety lead time. You can set up contradictions if you wish. The best approach is to decide what you want, and make the system do it.
Thanks Steven, I had worked with MTS and all reordering policy but couldn’t do that for MTO.Thats why I was not comfortable with MTO scenario. Thanks for your input. Ones I am through with MTO then we will have more interactive sessions. Thanks ones again for your inputs. Regards Abhay