Material Planning for Billable Delivery note items.

[Former Member]

Hi,

Scenario: Finished Product = F1 (In house prod)

Subassembly = A1 (Purchased)

Components =C1 , C2. (In house production)

F1 BOM contains A1.

A1 is assembled using C1 & C2.

Components C1 and C2 are made In-house by the factory and sold to the vendor .

Vendor assmebles C1,C2 and makes subassmbly A1.

Vendor sells "A1" back to the the factory.

Question: How to get requirements & Planned orders for C1, C2 when the F1 is planned in MRP?

Regards

[Former Member · Accepted solution]

F1 is normal production order set up

Normal practice for A1 is A1 is not sold from vendor.

For A1- configure subcontarcting cycle...Here you are gvining c1 and C2 to vendor and geting back A1.

When you plan F1 and run MRP, system will create subcontarcting order for A1 and form this suncontacting order system will pass the requirement to C1 and C2, and system will create PR to C1 and C2

If you are lokking for this cycle please come back.

If vendor sells A1, then you can do as folowing

When runing MRP, System will create PO to A1 to get it from Vendor.

C1 and C2 - Configure consumption based planning and sell in to Vendor from whom you are getting A1.

But there is not relation between A1 and C1/C2.

But in the first cycle we ahve all the link.

I suggest you better go for that

[Former Member · Accepted solution]

Thanks Sir,

Your suggestion 1 : Subcontracting.

My commnets : We do not inrend to use subcontracting in the given scenario

Your suggestion 2 : Consumption based planning for C1 and C2

My commnets:

Requirement of A1 is highly fluctauting. C1 and C2 are high value and long lead time item. Please giode if Consumption based planning will suit such type of components.

Thanks

[Former Member · Accepted solution]

if C1 and C2 are high value item...go for stg 70 and plan the material with MPS.

[Former Member · Accepted solution]

For C1 and C2, with strategy 70 and MPS,

sir, please guide on how the requirements will get generated.

Regards

[Former Member · Accepted solution]

With Stg 70,

The requirement is planned on MD61 as PIR. This PIR will get consumed by the requirements from its BOM header. Why I told MPS, just to bifurcate other materils in Planning run and many options to protect the planned order with fencing.