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inventory management in make to order

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This question has been flagged
inventory
2 Replies
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Ram S

Assume today in April 15, 2013. I have received a 3 sales order from a customer as follows.

Components

Number    Product       Delivery Date

1.        Laptop 15"     AUG 15, 2013
2.        Laptop 15"     OCT 15, 2013
3.        Laptop 15"     Dec 15, 2013

All components in Laptop (Hard Disk, Main Board , Key Board, LCD etc) has supplier lead time of 2 weeks to 6 weeks. Procurement Method is make to order for all components. Supply Method: Buy

Laptop:

Procurement Method is make to order Supply Method : manufacturing

Laptop Manufacturing Time is 2 weeks. i.e once material is issued manufacturing takes 2 weeks time.

My question is as follows.

  1. Upon confirming Sales order, will the *Request for quote(RFQ) generated immediately (assume the scheduler is ran manually) even for Dec 15th Delivery?

  2. If Purchase order is confirmed, then I may end up inventory for December delivery.

  3. Can System automatically Schedule the Request for quote based on Supplier Lead Time and Manufacturing Lead Time just before December instead of generating RFQ now upon scheduler is ran

Thanks

1
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Ray Carnes
Best Answer

The scheduler will create the RFQ immediately.

What it will also do is, for every product, add a "Scheduled Date" so you know when the product should be scheduled to arrive in time. In your situation it sounds like this date will be between October 15th and November 15th (based on the lead times you give).

In this way, you know immediately you need to procure something and also know when you need it buy. You can then merge this procurement with one that comes later to benefit from an order discount on a larger quantity.

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Ram S
Autor Best Answer

Thank you Ray Carnes. Appreciate your help.

First When Customer ask for quotation we send Generic quote with Product details. In this case customer provides order with specific scheduled date of Delivery.

  1. OpenERP will calculate Scheduled date based on Manufacturing Lead and Supplier Lead time. For this base is When we confirm order. For December delivery If I confirm the order April 20th, 2013 then Calculated Scheduled date will be way ahead and ends up in inventory. So Is their any provision to avoid inventory?

  2. If we can set manually while confirming the Sales Order, How and where we should Set this "Scheduled date" so that rest of the component procurement all takes place according to the scheduled delivery requested by customer.

Thank you

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Ray Carnes

Just change the "Order Date" before you confirm the Sales Order.

Ram S
Autor

Thank you. :)

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