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Drill down production item to calculate purchase items in BOM

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Posted on by LF-16052033-0 176
Hello experts, 
 
We are struggling with how to calculate planning for our sub-assembly production items. How do we use the demand forecast to predict how many sub assemblies we want to produce for the week to have the system calculate how much we need to purchase for all of our buy items for the sub assembly?
 
Does the planning worksheet calculate and drill down from the production bom into the components that make up the finished product?
 
 
Categories:
Reports and Business Intelligence
Manufacturing
  • Suggested answer
    Ben Baxter Profile Picture
    Ben Baxter 4,156 Moderator on at
    Drill down production item to calculate purchase items in BOM
    To add one more point to your question, "How do we use the demand forecast to predict how many sub assemblies we want to produce for the week", you generally build your Demand Forecast for your Finished Goods.  The forecast demand for the Finished Goods will determine which Sub-Assemblies are going to have demand, which in turn determines which purchased components are going to have demand.  You don't need to Forecast each level in your BOM, the system will see the subsequent lower-level demand created by the Finished Good's Forecast.
     
    Once you establish your Finished Goods Forecast, you are making a decision on HOW (stock vs. lean, etc.) to handle the demand generated for the sub-assemblies and purchased components.
     
    Best Regards,
    Ben Baxter
    Accent Software Inc
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    YUN ZHU Profile Picture
    YUN ZHU 62,477 Moderator on at
    Drill down production item to calculate purchase items in BOM
  • Suggested answer
    Ben Baxter Profile Picture
    Ben Baxter 4,156 Moderator on at
    Drill down production item to calculate purchase items in BOM
    The Planning Worksheet will scan through every level of your Bill of Material.  It will suggest Prod. Orders for your Sub-Assemblies.  It will suggest Prod. Orders for your Sub-Sub-Assemblies.  It will suggest purchases for the materials at all levels based on all suggested Prod. Orders (finished or sub-components).
     
    Once you understand how strong the calculation is, you'll want to define how you want the results to be.  Do you want your sub-assemblies on their own Production Order or nested on the Parent Item's Prod. Order?
     
    Don't forget, all Items have their own Planning settings.  You don't have to use Fixed Reorder, Lot-for-Lot, or Order for ALL Items, you get to mix and match based on your rules for the Item.  Beyond that, you get to make those decisions based on each plant/warehouse (a.k.a. Location).
     
    I would strongly recommend you reach out to your partner for a review of the Planning capabilities within Business Central.  There are a lot of great features, but with flexibility can come different configurations to dial in the planning for your business needs.  There are a lot of great sessions available on YouTube as well.
     
    Hope this helps get you started!
     
    Best Regards,
    Ben Baxter
    Accent Software Inc

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