Running MRP (create a purchase order according to production needs) on your production plan can enable you to supply the correct raw materials at the right time in the right place. You can produce purchase orders based on your production needs, the system will calculate the minimum inventory needed from free inventory and goods on the way to produce purchase orders that will be appropriate, taking into account delivery times as well.
ABy entering minimum inventory amounts and specifying inventory procurement times, you can ensure that orders are created on time. You can specify the procurement lead times and warehouse inventory levels on the stock cards. You can further specify the minimum purchase amounts and purchase coefficients and make your purchases accordingly.
For those purchase requirements which are automatically generated, you can instigate the purchase orders according to demand. For purchase requirements that originate from MRP, you can create purchase orders. By planning production and by the automatic raw material purchase order that ensues from this planning process, you can reduce the cost of idle inventory.