A planned order receipt is a future projected receipt based on the generation of a planned order that has not yet been firmed into a scheduled receipt.

planned order receipt

In a planning schedule, planned order receipts are also known as the planned receipts or released orders or released MPS.

What actually is a planned receipt?

A planned receipt is a component of the MRP or materials requirement planning and helps in step-by-step MRP calculation.

It is the amount of inventory finally ordered after considering the remaining stock, and also the ones that are scheduled to arrive later.

These are orders that are placed or will be placed and are scheduled to be received at the beginning of a particular transitory phase.

It is a well-planned release of an order with a specific quantity of raw materials, parts, assemblies, subassemblies.

These raw materials are then used up as the inventory and added up with the stock remaining, also known as projected available balance, from the previous time fence or period.

Previously ordered receipts are also scheduled to arrive and thus need to be added up to the MPS during that period.

The available inventory stock added to the scheduled receipts of materials due and then netted from the gross requirements gives us the value for net requirements.

That is a value that quantifies the units required for the next time fence. The projected available balance is the balance that is being projected into the future as the required number of inventory remaining can even be negative.

Planned order receipt in MRP record

How is the planned order receipt calculated?

Planned order releases are mostly based on whether the projected available is negative or below zero, which means all the inventory has been used up, and more needs to be ordered in.

A planned order receipt gives a date on which to expect an order. If the projected available is zero or is more than that of a certain safety stock value, there is obviously no requirement to put in a planned order release.

When a planned order is released, it is always a confirmed order because it has been calculated after netting off the inventory. Thus it is not similar to the anticipatory order releases.

A planned order release meaning is always about a much more confirmed event. Hence, it is controlled by an MPS, a computer-generated program that maintains a schedule and keeps a tab on the planned orders.

If the projected available balance is zero during a fixed time fence, the MPS will not put any further order.

But once the time span is over, it will generate an order after netting and evaluating the on-hand inventory.

Example of planned order receipt

Let us take an example of a scenario of creating a planned order receipt in a factory that needs a certain kind of material.

The on-hand inventory present at a given moment is 40, and the demand for the first week is 45. Now, as the demand is more than the projected balance, the entire balance is used up along with 5 more units.

That makes the projected available balance for the next week negative (-5), So now, as the projected balance is negative, an MPS is released of 60 units which makes the balance 55. This MPS released is known as a planned order release.

Now, this week, there is a demand for 40units. That makes the projected available as 15. As the projected availability is now positive, it does not require any MPS to be released.

Hence, MPS is 0. And the date on which the planned order is due is hence known as the planned order receipt. Thus planned order releases are always equal to planned order receipts in terms of quantity.

What is the difference between planned order receipts and scheduled receipts?

The difference is that the planned order receipt is a receipt for a planned order that is not yet released. The scheduled receipt is a receipt for a released order.

What is the difference between planned order receipts and planned order releases?

The difference is planned order receipt indicates the date on which the order needs to be received, whereas the planned order release indicates the date on which the order needs to be placed to receive the goods on time.


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