Posted in Operations and Supply Chain Terms, Total Reads: 176
Definition: Unplanned Order
An unplanned order in which when the order is placed and the Purchase Order is prepared, the company preparing the order knows the ultimate objective why they are placing the order but they do not know the steps and services that would be required to achieve the objective so the planning for these kind of orders are very high level and are not planned at all.
These orders are placed when the company is also new and are placing the order for the first time. An unplanned order, as already mentioned, is placed only when the complete of the order is not known.
For example: A company producing bicycles is trying to modify its range of bicycles and have prepared a blueprint of the new model but since they are also producing it for the first time, they do not exactly know how to go about the production of the cycle due to which the order is unplanned. This type of order is an Unplanned Order.