Manufacturing Policy Question

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Posted on by BB-10052008-0

Hello,

When we initially set up our items in Microsoft Business Central, we set them all up with a /Make-to-Stock/ manufacturing policy. We are noticing that may not be the best way to operate with some of items.

We have items that we receive orders that need to have an assembly order placed in order to ship them but also this item is needed to be stocked on our shelves. Initially, I would think that /Make-to-order/ would make since... but then how what would we do when we need inventory for our warehouse since there will be no open sales orders for that sku at times. Any suggestions would be greatly appreciated.

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Shauna Langley 893 Moderator on at

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Hi,

Is this something that you could use stock keeping units for? If you had a stock keeping unit for your warehouse location then you can set it to have parameters for stock so that you always have some there on the shelf when needed.

You could then have a second stock keeping unit which would be for assembly.

In order for this to work you would need to have two separate locations but then once the item is assembled then you could transfer to the warehouse location.

Hope that helps,

Shauna

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Jun Wang 8,200 Super User 2025 Season 2 on at

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you need to set up the item with replenishment system as assembly and assemble policy as assemble to order. This way, you could consume the components automatically at the posting for the sale orders. If you want to make inventory for stock, you just simply create assembly orders manually and post assumptions.

Jun Wang

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Jun Wang 8,200 Super User 2025 Season 2 on at

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just want to clarify if you refers to the manufacturing as assembly or a manufactured item? cause BC control those on different fields.

regardless the concept is the same.

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BB-10052008-0 96 on at

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Jun Wang - Would I leave or change if we have the Manufacturing Policy as "Make-to-Stock" if the Replenishment system shows "Assembly" and the "Assembly Policy" Assemble-to- Order" (which I am testing right now? We currently show the "Assembly Policy" as "Assemble-to-Stock" so i just want to also confirm what the Manufacturing Policy should be so I can test in our sandbox.

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Jun Wang 8,200 Super User 2025 Season 2 on at

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it is a good question. you could just leave it as is.

if user sets the replenish system as assembly, the assembly related setting will drive the processes

As a result, the manufacturing policy field is not relevant in your case.

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Ben Baxter 6,575 Super User 2025 Season 2 on at

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Reading your follow-up comments, it sounds like you have Replenishment System set to Assembly, so the Manufacturing Policy field is ignored. Your Assembly Policy is what will matter here. You stated that you need to build the Items based on Orders, but that you also need to keep some stocked. This would mean you use the Assembly Policy set to Assemble-to-STOCK.

You would use a Reordering Policy of Lot-for-Lot, which allows for a Safety Stock Quantity. This allows you to maintain some stock level, but also build more when your demand (Sales Orders) is present. The Planning will often just be replenishing your Safety Stock level as you sell Items. In the case where you get a spike in demand, the system will pick up on the additional orders and account for them AND replenishing stock.

For comparison, the Assemble-to-Order policy would only create Assembly Orders when you enter the Sales Order Quantity. This policy is for build on demand without a stocking process, so I would not suggest this option.

Hopefully the Assemble-to-Stock policy with Reordering Policy of Lot-for-Lot and a Safety Stock Quantity meets your planning need. I would suggest using the Planning Worksheet for planning to get the suggestions on when to make more based on your current demand compared to your available supply.

P.S. If this suggestion was helpful in resolving your question, please mark it as a Verified Answer to help other forum Users.

Best Regards,

Ben Baxter

Accent Software Inc

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