If a Customer calls with an urgent product need, can you meet the need? When the required inventory is something you build, the question is more complicated than looking at the Quantity Available in GP. You may also need to consider:
- How many are allocated? Perhaps inventory can be “stolen” from another order.
- How much unmet demand is present? Are there other orders in the system that are not yet allocating inventory, but will need to be fulfilled?
- Given available inventory of components, how many units of the product can you assemble quickly? How long will it take you to work through the Bill of Materials for the product, look-up the available inventory for each component, and calculate the total quantity you can build with the available components? How long will this take if there are Sub-Assemblies which could also be made quickly?
CTP is a combination of an exploded BOM View with Available Inventory for each item from one or more selected sites. CTP provides a planner or salesperson with a quick assessment of how many units of an item can be produced quickly, and if there are inventory shortages, which component is the rate limiting item.
The planner would enter the needed FG Item Number and update the Qty Quoted (quantity required by the Customer). CTP displays the following quantities for the entered Finished Good in the top portion of the CTP window:
- Qty On Hand
- Qty Allocated
- Qty On Order (includes both PO’s and MO’s)
- Unmet Demand (quantity needed that is not allocated)
The same quantities are displayed for each required Sub-Assembly and Component in the bottom portion of the CTP window along with the Max Build quantity.
CTP will use the GP Manufacturing BOM, the Inventory BOM, or Kit Components depending on the type of parent item used. If an item has both a Manufacturing BOM and an Inventory BOM, the Manufacturing BOM will be used.
Since CTP can use the Inventory BOM and Kit Components, CTP can even be used without GP Manufacturing installed.