Production demand planning
See which in-house items need making from demand, stock and open orders, turn the shortfall into work orders, and check when a quantity can be ready.
What it is
Production › Demand plans lists the items you make in-house that need making now. For each one it works out how much is needed from what sells and what you already have:
- Demand — what was sold over the window you choose.
- On hand — what is in stock at the location.
- On order / committed — what purchase orders and open work orders will bring in, less what open sales orders and work-order materials already hold.
- To make — the shortfall, with its value at catalogue cost.
Production › Capacity planning answers the next question: if a customer wants this quantity, when can it be ready?
Who it is for
- Production managers deciding what to make this week
- Owners of small workshops who plan by hand today
- Sales staff promising delivery dates
- Buyers who need to see which materials work orders will use
Before you start#
- Production must be on in Settings › General (or Settings › Business setup).
- Items to plan are products marked Made in-house (no supplier). Give each a bill of materials; a row without one says "no bill of materials yet".
- Making a work order from the plan needs the add right on work orders.
Step by step#
- Open Production › Demand plans.
- Choose the Demand window (the number of days of sales to plan from) and the location.
- Read the summary cards: To make, Value and the demand window.
- Look down the list — the largest value to make comes first.
- On a row, choose Make it to open a new work order for the quantity needed.
- Check and save the work order (see Work orders).
How the figures are worked out#
Demand plans uses the same reorder engine as purchasing. Where the nightly planning run has saved a plan for an item (from Inventory › Planning — forecast, reorder point and safety stock), those figures are used; otherwise demand comes straight from recent sales. Closed work orders are not counted. Under the backordering policy, the plan suggests only what orders are short of.
The figures are worked out when you open the page, so they are always current.
Capacity planning#
- Open Production › Capacity planning.
- Choose the Item, the Quantity and the location, then Check.
The answer is built up in order:
- Available now — what stock can cover today.
- Stock and open work orders — what open work orders will add, by date.
- Short — what still has to be made, and what "a new work order would need": each material's lead time, the earliest free scheduling resource, and how long the work takes. The duration comes from the last finished orders of that item, otherwise its lead days.
Items bought from a supplier are refused here — they are planned in purchasing, not production.
Work centres
The machines, lines, teams and work centres that scheduling and capacity use are set in Settings › Production. With Work-centre costing on in Settings › Business setup, each also carries a cost per hour and overhead per hour.
Other ways to start production#
- Inventory › Replenishment shows items below their minimum and can order up to the maximum as work orders for items refilled by making.
- An approved sales order with make-to-order lines can create its work orders directly (with Dropship & make to order on).
How it posts to the books#
Planning posts nothing. Postings start when materials are issued and finished goods are received.
Limits and what is not there yet#
- Demand plans does not create purchase orders for materials; buy them through purchasing or replenishment.
- It is a reorder-style plan, not full material requirements planning across several levels of sub-assemblies.
- Capacity planning gives an estimate; it does not book the resource until you schedule the work order.
Questions#
Why is an item I make missing from the plan?
It is not marked Made in-house, it has enough stock and open work orders to cover demand, or there was no demand in the window.
Does the plan include confirmed sales orders?
Yes. Open sales orders count as committed, so they reduce what is available and increase what needs making.
Can I plan for one location only?
Yes. Choose the location on the page; stock and orders are then taken for that location.