Repetitive Manufacturing is commonly used when a production process meets the following criteria:
The same or similar products are produced over a lengthy period. The products produced are not manufactured in individually defined lots. Instead, a total quantity is produced over a certain period at a certain rate. The items produced always follow the same sequence through the machines and work centers in production. Routings tend to be simple and do not vary greatly.
This scenario starts with Planned Independent requirements (PIR). These are used to perform demand management functions. Material Requirements Planning (MRP) generates planned orders for the material to be produced. By using the planning table, planning the production of materials and capacity on the production lines can be completed. The confirmation of Repetitive Manufacturing triggers multiple activities, such as finished product goods receipt, backflush of component materials, and posting of costs to cost collector.