If the Planned Production Orders over the planning period: 120 Product A We have Raw Materials on hand : Enough Raw Materials to product 60 Product A There are Purchase Orders at our suppliers: 50 Product A . The amount of products that should be order on New Purchase Orders with our suppliers is: 10 New Purchase Orders for materials to build product A
Using this formula
Po New product A=Product A Planned Production Orders - Product A Enough Raw Materials to product - Product A Purchased Orders
Where:
Product A Planned Production Orders=120
Product A Enough Raw Materials to product=60
Product A Purchased Orders=50
Let plug in the formula
Po New product A=120-60-50
Po New product A=10
Inconclusion if the Planned Production Orders over the planning period: 120 Product A We have Raw Materials on hand : Enough Raw Materials to product 60 Product A There are Purchase Orders at our suppliers: 50 Product A . The amount of products that should be order on New Purchase Orders with our suppliers is: 10 New Purchase Orders for materials to build product A.
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