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1.  Looking for Pros & Cons of "Assemble-To-Order" Items

Posted 8 days ago
​Hello,

I have some items that are currently configured with a Replenishment System of "Prod. Order" and an Assembly Policy of "Assemble-to-Stock", but they may be more accurately described as assemble-to-order items. We do not hold inventory of these items, and only assemble them after an order is created. But, I do not want to start proposing changes to our item cards unless there is a clear case for what benefits we get from the changes.

Can anyone who currently uses items that are set up with Replenishment System "Assembly" and Assembly Policy "Assemble-to-Order" help explain the benefits of setting up an item in this way? Does this add any challenges in handling the items (quoting, shipping, etc)?

Thanks!

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Grant Slemp
Manufacturing Programmer Analyst II
Nanostring
Seattle WA
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2.  RE: Looking for Pros & Cons of "Assemble-To-Order" Items

TOP CONTRIBUTOR
Posted 8 days ago
Edited by Ian Ray 8 days ago
Assembly Policy has no effect on an item with Replenishment System "Prod. Order." Assembly Policy only has an effect if the Replenishment System is Assembly.

In my experience, I use the Assembly Policy as it is in reality. That is, if we have stock, we assemble to stock as it makes no sense to assemble-to-order something that is already assembled. Likewise, if something is not assembled prior to being ordered, the policy is assemble-to-order. This is especially true if the assembly is always done by shipping employees prior to packaging an order.

I'm not aware of any complications with assemble-to-order policy. There is the possibility of assembling less than what is ordered as detailed at the bottom of the documentation for Assemble to Order or Assemble to Stock, but this is not difficult to deal with.

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Ian Ray
Cypress Grove
Arcata CA
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3.  RE: Looking for Pros & Cons of "Assemble-To-Order" Items

GOLD CONTRIBUTOR
Posted 8 days ago
Edited by Marguerite Manelski 8 days ago
We have several items that we have set up as assembly.  If you are only going to build stock once an order is placed you might want to look at setting your Item Card/SKU to a Reorder Policy of Order.


This will create a reservation for that stock stating that this stock can only be used for that order.  The other option would be to make your Reorder Policy Lot-For-Lot.  This will prompt stock to be built for that order only but will not create a reservation.  From what you are describing both would work for you.

Personally I prefer the Lot-For-Lot as the reservations created some issues for us.

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Marguerite Manelski
Purchasing Agent
American Ring
Solon, OH
**Great Lakes Chapter Member**
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4.  RE: Looking for Pros & Cons of "Assemble-To-Order" Items

TOP CONTRIBUTOR
Posted 8 days ago
Even if the Assembly Policy is assemble to stock, you can override the quantity assembled by exposing the "Qty. to Assemble" field on the sale line.  This will allow you to generate an assembly order even when none is automatically created.

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Dave Wiser
Controller
Beckwith & Kuffel
Seattle WA
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5.  RE: Looking for Pros & Cons of "Assemble-To-Order" Items

SILVER CONTRIBUTOR
Posted 8 days ago
We recently made the decision on Assemble-to-order vs. Assemble-to-stock for our kits.   It was  bit tricky since we previously used prod orders which only suggest kits when there is a demand (sales or transfer order). There is quite a bit of time involved in creating those kits.   What sealed the deal for us is the trigger for the consumption of inventory into the kit.   When the item is Assemble-to-order, the component inventory is not consumed until the sales or transfer order is posted.   While on an Assemble-to-stock (or a prod order) the component inventory is relieved when the Assembly is posted.   Since it takes us a few days to create the needed Assemblies and then stage them for shipping - we went with the stock option so the components were not seen as available for our sales staff during process.

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Linda Hart
Prince & Izant
Parma OH
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6.  RE: Looking for Pros & Cons of "Assemble-To-Order" Items

SILVER CONTRIBUTOR
Posted 7 days ago
​Manufacturing Policy is what you should manage when replenishment system = Prod. Order.

Assembly Policy only applies when replenishment system = Assembly Order.

We use Assemble-to-Order as our kits are simple, and no real assembly is actually happening. It's essentially picking multiple items (components) in the warehouse (we use Manhattan SCALE for distribution, integrated with NAV) and then when posting the shipment, it posts the assembly order. We have customized a lot, so your mileage may vary.

You can use Assemble To Stock and manage with your planning parameters so that you can build as much or as little as you want to have on hand, just as you would with a prod. order.

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Jason Luchka
Programmer / Analyst
FFR Merchandising, Inc.
Twinsburg OH
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7.  RE: Looking for Pros & Cons of "Assemble-To-Order" Items

Posted 6 days ago
Hi,
I also did some test with the assembly to order policy.
When the SKU or Item Card has this policy an Assembly order is created automatically.
When you cancel the line, the assembly order is also deleted.
Our problem was how to get the result of the assembly in the workflow for the pick of the remaining part of the sales order.
As the volume for Assembly to order are low, we prefer assembly to stock.​

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Annette van der Muur
Hal Leonard
The Netherlands
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