A product’s planning strategy must be outlined. It shows the industrial procedures for planning and manufacturing. There are two ways we may accomplish this.
Make to Stock: The production of items in the absence of sales orders, i.e., the stock is produced independently of orders.
Make to Order: This method is used to produce material for a single sales order or line item.
Capacity needs are produced in Work Center by MRP, and because MRP works with limitless capacity, everything in Work Center is planned without regard for capacity restrictions. It is necessary to level the capacity at the work facility.
Capacity may be leveled at each work center using a planning table to construct a constrained production plan.