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Stock item that is sometimes purchased and sometimes manufactured

  • 3 June 2024
  • 4 replies
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I have an odd question. We have part ABC123. This part is sometimes manufactured and has a BOM; sometimes, we purchase it from an outside vendor. Our engineering team wants to be able to use the same part number but two BOMs. I question if this is a good idea. Others might have similar scenarios and would love feedback on how they deal with them. 

The gist is we save money but have an extended lead time on the purchased item so in some cases, we end up making the item. 

 

 

 

4 replies

Userlevel 7
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@cmoreland - does the purchased item require you to send additional materials to the outside vendor to be worked on? or - is it just a straight purchase?

Userlevel 4
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@Debbie Baldwin - This is a straight purchase. We will send a drawing with some of these items. 

Userlevel 7
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@cmoreland - then I wouldn’t create 2 different BOMs. You can create one stock item that is typically Manufactured but then sometimes purchased. It would really all depend on the cost difference on how you wanted to handle this. Would those items be Lot/Serial controlled (so you could track specific cost) or would an average cost work? (the costs don’t differ too much). These are things to consider when making this decision. 

If 90% of the time you manufacture the item. Just set it up like you would a manufactured item. (With a default BOM) You can have a default vendor added to that item. When you want to buy it - instead of creating a production order from MRP or critical materials - just create a Purchase order instead and it will default your Vendor. 

I think this is a very common scenario for most companies. We will see if anyone has more advice. 

Userlevel 4
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Thanks @Debbie Baldwin  Our issue is that this part is part of a larger build. So, this would be a sub-assembly of the final product. 

Personally, I think we should swap out the part before creating the linked items so you would have an ABC123-M and an ABC123-P (Manufactured/Purchased) based on the availability of either part on the shelf.

Anyhow, just trying to see what others might be doing in similar scenarios. 

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