Chosen approach to business processes will determine all the activities of the company. One approach to business processes with Enterprise Resources Planning (ERP) technology, connect or integrate the modules Sales and Production Planning. This relationship is shown in the image below. The application of such integration can be easily done and a clear concept, while the company’s needs are very diverse in its application. Therefore, each company has different production strategies, production of different types, direct or indirect relationship between sales orders and supply orders, Bill of Material is different, or order through the forecasting approach customers in order to plan production, and special cases such as a material component in the production of many items and projects for the company.
Types of integration approach between sales and operations planning can be seen in the picture below. (Hamilton, S., 2002. Maximizing Your ERP System Manager a Practical Guide, McGraw-Hill).
Each company has one of the above types of approaches to implementing the integration between sales and production planning.
Originally Posted on ArifInfo.