Understanding Blanket Orders for Style Items
Blanket orders are generally used early in the process to assist the manufacturer in planning resources and plant capacity when only forecasts are available and no sales orders exist. You forecast at the style item root level 0 and the forecast determines the type of material, but not the specific characteristics, such as the color. The blanket order is for raw materials only. You can create a blanket order at any level from style item root level 0 to a child style item. You use a version of the Purchase Orders program (P4310) without the Matrix Entry program (PCW10) enabled to create a blanket order for a style item at any level.
Once the first sales orders are available, then you generate the final forecast, which is precise to the lowest-level child style items.
You use the Generate POs from Requisitions/Blanket Order Release program (P43060) to release all or part of a blanket order. The blanket order release generates purchase orders for the raw material identifying the specific characteristics. For example, in the apparel industry, the purchase order specifies fabric and color.