MRP glossary TOP > Order Receipt/Shipping Control > Reservation
Reservation
It refers to the scheduled order receipt, which is confirmed after the production is considered according to quotations.
In the manufacturing division, such resources as materials, workers, machine and facilities are ensured, considering that a reservation will bring an order in the near future. In some cases, a certain level of work starts. But reservations do not always lead to the orders. When a lot of reservations result in no orders, the administration for order receipt becomes complicated, and the manufacturing division is in disorder. Therefore it is needed to cancel reservations. In most cases, the reservations will be automatically cancelled when the order is not formally placed within a certain period of time after receiving the reservation.
Related term: Contract Delivery
Reference:JIT Business Research Mr. Hirano Hiroyuki
Quotations | Order Receipt/Shipping Control | Shipping Control