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. The release of a production order is contingent upon the availability of materials, as well as capacity within the production process.

Related Courses

Accounting Information Systems