Make To Order With Stock Consumption

I apologize in advance if this has been discussed but I did not see any clear answers on this. We run in a mixed mode of Make To Order and Stock production. When sales enters an order for Make To Order, MRP tell the shop to make everything for that order even though it includes some of our stock items. MRP ignores what we have in inventory and wants up to make everything. Is there a setting or something that we can have the “stock” parts automatically consumed if the order is Make To Order before asking us to make more. We are currently to this by duplicating the sales order with a mirrored production order but we lose all the tracking, etc. of the Make To Order.

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What do you mean by “everything”?

Yes, a Sales Order Release marked Make to Order will definitely result in the system ignoring onhand inventory of that line item final Part and MRP will create a Job Suggestion for it (ignoring inventory of that final Part number).

Even if the Line Qty is 10, and you have 5 in inventory. If the release is Make to Order, it won’t create a job suggestion for 5… it will make a job suggestion for all 10.

Material Parts: This might play into how your methods are built??

Any material parts that are in inventory could still be issued to that job. It shouldn’t tell you to make all material parts from scratch… UNLESS your method has the materials all marked as “Make Direct” or “Purchase Direct” in the method. In that case, yes, it would tell you to make/buy all those material parts from scratch as well (ignoring onhand inventory of those material parts).

Depending on your organization and how you want to handle things… our sales group will look at the available onhand qty of the part on the line item and potentially create (2) releases on the sales order.

In the above case, we need Qty (70) for the line. There are (11) available. So, IDEALLY, the sales person should create release 1 for a qty of (11) which would ship from stock. They COULD then create a second release, mark it as Make to Order for a Qty of (59).

What typically happens though is that the sales person will just leave Release 1 as a Qty of (70) and NOT mark the release Make to Order. This should trigger MRP to see a shortage (demand > supply) and create a stock job of this part to make (59)… and once those are received into inventory, they can ship all (70) from stock.

The key is obviously whether the release is marked as Make to Order or not. If they keep release 1 as Qty (70) and mark it Make to Order… then yes, MRP will make a job for all (70), completely ignoring the (11) we have available.