PPT looks at default MR type in Item to set MR type.

erpnext/manufacturing/doctype/production_planning_tool/production_planning_tool.py

@@ -451,10 +451,8 @@ class ProductionPlanningTool(Document):
 					"company": self.company,
 					"requested_by": frappe.session.user
 				})
-				if item_wrapper.default_bom:
+				material_request.update({"material_request_type": item_wrapper.default_material_request_type})
-					material_request.update({"material_request_type": "Manufacture"}) 
+
-				else:
-					material_request.update({"material_request_type": "Purchase"})
 				for sales_order, requested_qty in items_to_be_requested[item].items():
 					material_request.append("items", {
 						"doctype": "Material Request Item",

erpnext/patches.txt

@@ -306,4 +306,5 @@ erpnext.patches.v7_0.calculate_total_costing_amount
 erpnext.patches.v7_0.fix_nonwarehouse_ledger_gl_entries_for_transactions
 erpnext.patches.v7_0.remove_old_earning_deduction_doctypes
 erpnext.patches.v7_0.make_guardian
-erpnext.patches.v7_0.update_refdoc_in_landed_cost_voucher
+erpnext.patches.v7_0.update_refdoc_in_landed_cost_voucher
+execute:frappe.db.sql("update `tabItem` set default_material_request_type= case when default_bom is not null then 'Manufacture' else 'Purchase' end")

erpnext/stock/doctype/item/item.js

@@ -116,6 +116,14 @@ frappe.ui.form.on("Item", {
 	}
 });
 
+frappe.ui.form.on('Item Reorder', {
+	reorder_levels_add: function(frm, cdt, cdn) {
+		var row = frappe.get_doc(cdt, cdn);
+		type = frm.doc.default_material_request_type
+		row.material_request_type = (type == 'Material Transfer')? 'Transfer' : type;
+	}
+})
+
 $.extend(erpnext.item, {
 	setup_queries: function(frm) {
 		frm.fields_dict['expense_account'].get_query = function(doc) {
@@ -351,6 +359,7 @@ $.extend(erpnext.item, {
 	}
 });
 
+
 cur_frm.add_fetch('attribute', 'numeric_values', 'numeric_values');
 cur_frm.add_fetch('attribute', 'from_range', 'from_range');
 cur_frm.add_fetch('attribute', 'to_range', 'to_range');

erpnext/stock/doctype/item/item.json

@@ -705,6 +705,33 @@
    "set_only_once": 0, 
    "unique": 0
   }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "default": "Purchase", 
+   "fieldname": "default_material_request_type", 
+   "fieldtype": "Select", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Default Material Request Type", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Purchase\nMaterial Transfer\nMaterial Issue\nManufacture", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
   {
    "allow_on_submit": 0, 
    "bold": 0, 
@@ -2308,7 +2335,7 @@
  "issingle": 0, 
  "istable": 0, 
  "max_attachments": 1, 
- "modified": "2016-07-21 18:44:10.230372", 
+ "modified": "2016-07-28 19:12:27.253074", 
  "modified_by": "Administrator", 
  "module": "Stock", 
  "name": "Item", 

erpnext/stock/doctype/item_reorder/item_reorder.json

@@ -124,8 +124,9 @@
    "label": "Material Request Type", 
    "length": 0, 
    "no_copy": 0, 
-   "options": "Purchase\nTransfer", 
+   "options": "Purchase\nTransfer\nMaterial Issue\nManufacture", 
    "permlevel": 0, 
+   "precision": "", 
    "print_hide": 0, 
    "print_hide_if_no_value": 0, 
    "read_only": 0, 
@@ -146,7 +147,7 @@
  "issingle": 0, 
  "istable": 1, 
  "max_attachments": 0, 
- "modified": "2016-07-11 03:59:06.870780", 
+ "modified": "2016-07-28 19:15:38.270046", 
  "modified_by": "Administrator", 
  "module": "Stock", 
  "name": "Item Reorder", 

erpnext/stock/reorder_item.py

@@ -16,7 +16,7 @@ def reorder_item():
 		return _reorder_item()
 
 def _reorder_item():
-	material_requests = {"Purchase": {}, "Transfer": {}}
+	material_requests = {"Purchase": {}, "Transfer": {}, "Material Issue": {}, "Manufacture": {}}
 	warehouse_company = frappe._dict(frappe.db.sql("""select name, company from `tabWarehouse`
 		where disabled=0"""))
 	default_company = (erpnext.get_default_company() or