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Hello,

We have a multi-level BOM that requires

  • Outside Processing at the Sub-Assembly level
  • The Components require shipment to the Outside Processing Vendor (“Vendor Shipment)

Issue:

  • When Running MRP at the top level Finished Good level - MRP Display will suggest the creation of the Sub Assembly Production Order
  • But MRP will NOT suggest the Components on the Sub Assembly that are marked for “Vendor Shipment”. (It does suggest if a Component is short and is marked as Regular)

Options that I tested

  •  If a Production Order is created for the Sub Assembly and MRP is run - it will suggest Prod Order for the Sub-Assembly.
  • The problem is 2 fold - 
  1. There are Sub Assemblies that are 3-5 deep and hence will require a lot of effort to create and keep track of all the Prod Orders and Components required.
  2. Very Heavy and a lot of Multi-Step “Outside Processing”  (Components shipped to Vendor 1 → who in turn will ship to a second one → who after processing will send it back to the client)
  3. Seasonal Business - which requires Heavy Sales Forecasting and Planning of Components which may have a very long lead time - requiring MRP to suggest Component requirement at all levels.  (Have not tried - but could a work around be creation of a Flat BOM-with all components at a single level and mark it as Plan BOM ID for Top level FG? - for MRP - The issue here is with frequent Engineering changes possible to the FG - keeping the 2 BOMs in sync could be an issue). 

Any insights, inputs would be helpful - Thanks 

The material of the outside process is set to “subcontract” - correct?  How do you have the “Subcontract Source” value set for the subcontract material?

Hi Angie,

Thanks for the reply - the Setup is

  • Work Center = Outside Process
  • The Material Line = Stock Item, Material Type = Subcontract
  • Subcontract Source = Ship to Vendor 

Thanks

MRP considers Ship to Vendor subcontract components when I run a test.  

I assume this is how the materials are set for the sub-assembly.

You need to create the parent production order and the sub-assembly production order - and any material components for either of those being sent to the vendor will need to be setup as subcontract and ship to vendor.

Thanks Angie,

Hope I understood the comment correctly -

So for the Components marked as “Ship to Vendor” in a Sub-Assembly to be considered by MRP - the pre-requisite is to create a Production Order for the Sub-Assembly beforehand. Only creating the Parent / Top level FG Production Order / Sales Order will not be enough for the MRP to consider the Component.

If so can this be a feature that can be included where components marked for “Ship To Vendor” in Sub-Assemblies also when running MRP against Parent FG Orders?

Regards

 

 

Just to correct my response - MRP will blow down through the subassembly BOM … there is no requirement to create the subassembly production order first.

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