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Figure 6-16: The production process

periodically during the process, including overhead allocation, work in process
determination, and order settlement. Now that we have a general understand-
ing of the various process steps involved with production, we examine these
steps in terms of triggers, data, tasks, and outcomes.
Our discussion will use the following make-to-stock GBI scenario. The
inventory for the men’s off-road bike (ORMN1000) has fallen below its mini-
mum level. Consequently, GBI must produce more of this model. Going further,
the company has determined that the optimum quantity for a single production
run is 25 bikes. We will assume that the raw materials needed to make these
bikes and the needed capacity in the various work centers are both available.

REQUEST PRODUCTION
Figure 6-17 illustrates the elements of the request production step. A request
for production is triggered by a need to produce materials. Typically, this trigger
is a result of activity in another process. Consider the two production strategies

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