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  • Example of PO Generation (MATA650 - SIGACOM)

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Example of PO Generation

A company sells computers. This company is the manufacturer of components like CPU and monitors but does not produce keyboards or mice.

One PO is added for production of 1complete machine. The system verifies that there is one monitor and one keyboard in stock and automatically allocates the two items. The same way, it generates a child PO for production of one CPU which is not in stock and also generates a PR for the purchase of a mouse since it does not have it in stock,  or in the factory. Thus, execution of PO is ensured and the final product is assembled.


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