Question

Part allocation and reserve vs buy or make direct or other easier option

  • 26 May 2021
  • 0 replies
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We have all heard the phrase ‘rob Peter to pay Paul’. And this happens every so often where a part waiting in warehouse to go to big assembly get issued to somewhere else or shipped on the sales order. This issue is amplified with shortages and lead-time changes due to pandemic.

We tried doing Buy-direct and make-direct and that seems to lock the Job to the Purchase order and we cannot issue from stock if you have on-hand. 

On the other hand, we tried doing Part allocation and reserve and that comes with its own issues. Managing Allocation and Reserve can quickly become a full-time job since un-allocating is not easy. If you un-allocate, the fulfilment sequence may needs to be corrected, which means deleting all allocation for that part and reallocating. If you have several hundred parts to manage, that can be a real hassle. And this needs to be done every now and then.

I am thinking there’s got to be a better way. If you have some suggestions, I’d love to hear.

Thanks,

Rakesh


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