What is the difference between the two Production Planning methods?

Question

What is the difference between the 2 production planning methods:

• Build to Order

• Replenish to Minimum

Answer

The Build to Order method only looks at backorders from sales orders which are for items that are primary output items.

The Replenish to Minimum, much like the Purchase Order reorder method you would be familiar with, factors in current stock levels and future purchase orders, current work orders and so on.