If you have an order for a master item with a Bill of Materials, the Create POs from O/E tool should be able to look through the BOM and create purchase orders for components that are short to satisfy the current orders.

Anybody whose business is based on assembling components into a finished good would find this useful, as it will streamline their component ordering process. This is especially useful if the finished goods are built on demand.

Currently, if you have sales orders for items with Bills of Material, the Create POs from O/E tool doesn't look at the component inventory. It only checks the inventory of the finished goods.

by: Doug F. | over a year ago | Operations Management