1.) Why we are having different Production calendar(Time stream) as we can work with factory calendar.
Time stream is a more customized version of factory calendar. You can restrict your factory calendar that is used in thousand other places for reference to dates in a time stream.
For example. You have a factory calendar that is 365 days. It is used by two locations but one factory has to plan 3 Mon-Thu and other Fri-Sun. Instead of modifying the factory calendar. you can keep it centrally and create a time stream that is restricted to Mon-Thu and other restricted to Fr-Sun still both referring to factory calendar that is 7 days a week.
2.) what is the exact functionality of the Production calendar ?
You can define the days and times the production should be run at a plant using the production calendar in calendars tab of location master. Refer to above example on the need for factory calendar.
"The production calendar is used to schedule production activities. A production calendar valid for the entire production is assigned to a location."
3.) Is it necessary, that always we have to maintain the Production calendar in location master data.
No. It is not mandatory. You can in fact manage the days in which production has to be run based on the resource calendars and capacities.
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