In manufacturing

Manufacturing

Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...

, a pegging report is a record showing the relationship between demand and supply. Pegging reports are generated by Material Requirements Planning Systems

Material requirements planning

Material requirements planning is a production planning and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, while it is possible to conduct MRP by hand as well....

. This report is used to develop the manufacturing strategies, to order components based upon the requirement proposed by the S&OP Team.

The report shows the creation of demand for the components by the parents, the quantities needed, and the schedule to which they are needed.