Planning with Subcontracting Process

mahesh

Planning engine of NAV works based on location wise Demand & Supply which is true & expected also. But it creates problem with subcontracting scenario.

Let’s say:
Production Order: Finish Item: F1 - 100
Component: R1 – 100
Inventory of R1 - 110

I have created Production Order of Finish Item: F1 with 100 Qty which requires raw material R1 100 Qty.
Client would like to subcontract this process. In order to subcontract, raw material will be sent to Vendor location. When receiving goods from vendor, Consumption will be posted.
System just transfers Stock to another location when sending material to Vendor Location.
In above case, R1(100 Qty) will be transferred to Vendor Location.

If Client runs planning engine just after issuing material to subcontractor, System will generate demand of 90 Qty. because sufficient qty is not in stock. But practically, R1 is available but given to vendor for processing. So system shouldn’t generate any demand at all.

How should i solve this problem? Any experience or idea?

ayhan06

as far as I remember, Indian localization has subcontracting module. this can have differenet behaviour. however, main problem in your case is location code in prod. order components. after transferring components to vendor location, location code in related prod. order component should be changed to vendor location, otherwise you will have 90 demand in planning.

mahesh

Hello Ahyan06,

You have understood case correctly..
We had also thought about changing Location at Prod. Order Component.
But this solution won't work because if i send components to more than one Vendor from same Production Order, it is not possible to select multiple Location in Prod. Order components.

Best Regards,
Mahesh Jain

ayhan06

hi,

you didn't mention 2 differeent vendors. create 2 different component için production BOM. create two diferent operation in routing. map them with routing link codes. so, you will have two different prod. order component in prod. order.