Commodities to Stock
Employ Material Requirement Planning
From the Master Production Schedule the manager has determined such the products to be produced. A Bill of Materials can then be prepared. These contents in descending order the components essential to create the final product. The information essential includes part number or description, part name, next higher level assembly, essential quality per end item, quantity per end item and quantity essential for the next higher level assembly there.
Stores Ledger Account is also employed to get information on what is now available. The file signifies balance on hand and past data on how should is generally ordered, lead-time, and safety stock. The manager can find out from the above, what requirement to be purchased.