What is the difference between Release process and Prchase order process?

Like both processes are used to replenish, but than whats the need of both the processes.One of the process can be used to come up with request.Correct me if i am wrong.Kindly explain with an example

Hi Nandan, 
In purchase Order we have fixed date , quantity and schedule on which supplier has to deliver the items . 
Example:PO with Item A: 
to be deliver on 12-May-2010 20 quantity 
to be deliver on 12-Jun-2010 40 quantity 
In Release process we have quantity/price schedule agreement of item between supplier and customer.it specifies certain amount of quantity of the products that a supplier is to deliver to the customer in a specific time period. Customer uses MRP run at regular intervals and determines what exact requirement quantities are to be released from the scheduling agreement on certain dates.this schedule lines then releases to SNC to inform supplier about current demand 
In schedule agreement schedule lines have the following status : 
1)Fixed dates and quantities:Quantity and date of the schedule line are fixed and will remain unchanged. The schedule line belongs to a delivery-relevant release. The supplier can deliver the quantity without waiting for another acknowledgement or the customeru2019s request. 
2.Production and material go-ahead:The schedule line belongs to a forecast delivery schedule that is not relevant for delivery and is in the production go-ahead period. The supplier can, therefore, procure the materials for manufacturing the ordered products and start with production. If the customer cancels a schedule line, the supplier can invoice the material and production costs. 
3.Material go-ahead:The schedule line belongs to a forecast delivery schedule that is not relevant for delivery and is within the material go-ahead period. The supplier can, therefore, procure the materials that s/he requires for production. If the customer cancels a schedule line, the supplier can invoice for the material costs. 
4.Preview:The schedule line belongs to a forecast delivery schedule that is not relevant for delivery. The schedule line is not binding and may possibly change. The supplier can use the data for his or her own planning, however. 
Exmaple:We have schedule agreement of 1000 quanity for Item A and time period start date:30-Apr-2010 end date:1-May-2011 
Customer runs MRP/planning from he gets following schedule line with status as mention above 
quanti ty 100 with schedule line status Fixed dates and quantities which means Quantity and date of the schedule line are fixed and will remain unchanged. The schedule line belongs to a delivery-relevant release. The supplier can deliver the quantity without waiting for another acknowledgement or the customeru2019s request. 
quanti ty 200 with schedule line status Production and material go-ahead which means schedule line belongs to a forecast delivery schedule that is not relevant for delivery and is in the production go-ahead period. The supplier can, therefore, procure the materials for manufacturing the ordered products and start with production. If the customer cancels a schedule line, the supplier can invoice the material and production costs. 
quanti ty 300 with schedule line status .Material go-ahead which means schedule line belongs to a forecast delivery schedule that is not relevant for delivery and is within the material go-ahead period. The supplier can, therefore, procure the materials that s/he requires for production. If the customer cancels a schedule line, the supplier can invoice for the material costs. 
quanti ty 500 with schedule line status Preview which means The schedule line belongs to a forecast delivery schedule that is not relevant for delivery. The schedule line is not binding and may possibly change. The supplier can use the data for his or her own planning, however. 
Note that total quantity of product is 1000.,Depending upon schedule line supplier can plan his/her activity. 
Summary: In Purchase order supplier has to deliver fix amount of quantity on fixed date and time to the customer .
In Release process supplier can deliver the product depending upon schedule line status as mention above so advantage of using release process we fixed period and fix quantity in that period customer can send his demand to supplier whenever customer requires in schedule agreement time period. 
Thanks,
Nikhil

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