Production order definition
/What is a Production Order?
A production order is a document that states the number of units to be manufactured, the date when the order is released for production, and where the units should be delivered once they have been completed. A production order may be triggered by a long-term plan to maintain certain inventory levels, or by the receipt of an order from a customer. When a production order is issued, a downstream effect is for the production software to reserve the on-hand raw materials required for the order, and/or to automatically place purchase orders for these materials if there is not enough of them on hand to support the order.
The release of a production order is contingent upon the availability of materials, as well as capacity within the production process. It may also be contingent upon the availability of skilled labor.