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Answer Posted / prasad natu
There may be two types of Items 1) Finished Good Item Or 2)
Raw Material Item. Raw Material Items related to the
finished good demand. The demand all the way comes from
forecast or sales order. Forecast we can set for 4 months
or 5 months depending on the organization. The plan for raw
material comes from the forecast. It includes lead time
from supplier , transit time , material clearence time etc.
In oracle for planning we use either MRP or ASCP which
suggest us the perfect plan on the basis of forecast. ASCP
also gives us the production plan of finished good on the
basis of sales order.
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