How can items of an assembly be forecasted with the finished good?
We can use demand planning in “sales forecast” mode for our assemblies (finished goods), but the components within the assemblies are not being pulling according to the demand plan for the finished good. Question, how can we get the plan to reflect the correct item requirements within each of these assemblies in the week they are required per the demand plan/sales forecast?
The Demand Source on the components of the finished good should be set to “entered and planned orders”. This way when your supply plan runs, it is going to generate work orders for your finished AND it will generate the work orders/purchase orders for the components because the demand source is set to look at Entered and Planned Orders. In the case of sub-assemblies and components, the planned order is the work order for the finished good.
Thanks for your answer! So we have to run both Demand Plan and Supply Plan? Currently we are getting an error when trying to generate Supply Plan. It seems we need to change WORK ORDER VARIABLE LEAD TIME to be 1. Currently it is set to 7 and causing strange errors because we have assemblies within assemblies. Have you seen this as well?