There are 2 basic types of supply elements:
- Planned order
An internal requirement for action by the production planner; the production planner converts
planned orders to production orders and schedules them for release to the shop floor.
- Purchased requisition
An external requirement for action by the buyer; the buyer converts purchase requisitions into
purchase orders and releases them to vendors that supply the materials.
The type of supply element that MRP creates- either the planned order or purchase requisition- is
driven the procurement type field setting on the material master.