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Replenishment Parameters

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  • 1.  Replenishment Parameters

    Posted 7 days ago

    I have a question regarding setting replenishment parameters on manufactured items' cards:

     

    Let's say we are manufacturing Bikes. There are major five sub-assemblies like wheels, handles, Seats etc. We would like to manufacture these sub assemblies and stock. When a sales order comes in  for a bike, we can pull the 5 sub assemblies and manufacture a custom red bike, tandem bike etc.

     

    Final bike would be 'Make to Order'.

     

    Five sub-assemblies would be 'Make to Stock'

     

    What about the manufactured components that goes into making the sub-assemblies? Say, wheels require a special manufactured frame, we don't want to stock the frames but we want to make the frames when we are manufacturing wheels.  Would that be MTS or MTO?



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    Swati

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  • 2.  RE: Replenishment Parameters

    Posted 7 days ago
    As you now would have two or more components with an interdependent relationship, and as at least one of those components is MTO, you would be following a Configure-to-Order (CTO) approach.

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    Jack Moran
    Solutions Architect
    Columbus Global
    Greenfield NH
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  • 3.  RE: Replenishment Parameters
    Best Answer

    TOP CONTRIBUTOR
    Posted 7 days ago
    Swati,

    The 5 sub-assemblies would be Make-to-Stock, because you build them to a stock level independent of the Bike.  When your stock level drops and the system triggers replenishment for the wheels, it will also trigger the demand for the manufactured wheel frames, which would technically be Make-To-Order although that is more informational at that point.

    Good luck, let us know if you're seeing the results you expect.

    P.S.  When testing new configurations, you should always know what you are expecting to see before you run the Planning Worksheet, otherwise you won't know if it worked.

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    Ben Baxter
    Consultant
    Accent Software, Inc.
    carmel IN
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  • 4.  RE: Replenishment Parameters

    Posted 5 days ago
    Thanks for all the responses. I did testing with the above recommendations and got the desired results.


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    Swati Persaud
    NUWAVE RESEARCH INC
    BURNABY BC
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  • 5.  RE: Replenishment Parameters

    Posted 7 days ago
    Although you could set up the components as make to stock the issue would be if you have multiple demands for the component based on multiple wheel requirements. If in doubt I think it is safer to set them up as make to stock with ordering controls that only flag a production order when there is demand, the advantage of this would be if there are multiple requirements for the component and you have the item setup correct (like lot for lot) NAV will combine the requirements into one production order.

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    Fred Holst
    Sign Zone LLC
    Brooklyn Center, MN
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