Question no 3974 : Leading and Dependent Orders in Manufacturing

In SAP Production Planning, ______________ represent multilevel production structures for materials produced in-house in which the manufacturing order for the highest material in the structure automatically generates manufacturing orders for the semi-finished products in the structure. The output quantity of the manufacturing orders for the semi-finished products is the quantity required for the manufacture of the highest material.

(only one answer)

A. Multi-level Production.
B. Joint Production.
C. Collective Orders.
D. Production Version.
E. Special Procurement Key.

Answer: C

Collective orders can consist of planned orders or manufacturing orders (production orders or process orders).
A collective order consists of the following:
A leading order
The leading order is the order at the highest level of the collective order. It is created to manufacture the finished product.
Dependent orders
All orders below the leading order are dependent orders. The system automatically creates the dependent orders for the leading order. Dependent orders can be subordinate to each other on multiple levels of the collective order.
Changes to higher-level orders (such as a changed order quantity or release of the order) are immediately reflected in all dependent orders when the order is saved.