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WilloWare

Add Life to BOM Alternate Items in Dynamics GP


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You have two boxes of 14-mm nuts.  One box has a gold-chrome finish, and the other has a black-chrome finish.  Other than the color difference, they are physically identical and can be used interchangeably.  The black-chrome item is slightly more expensive, and is required for one of your products, so you do not order it often, and usually end-up having to order more than you need.

Keeping those black-chrome nuts around ties-up capital in inventory, occupies storage space, and incurs a little bit of additional labor expense each time they are cycle counted.  If only there way a good way to use them up.

There is!  Since they are equivalent to the gold-chrome nuts, they can be added as a BOM Alternate Item to the Dynamics GP Manufacturing Bills of Material which use the gold-chrome nuts.  This setup is shown below:

BOMAltBOM

Once the Alternate Item relationship is created, MFG PowerPack's BOM Alternates enhancement jumps in to help you use those alternates.

First, when a Manufacturing Order is created, if there is a shortage of the Primary Item on the Picklist, the BOM Alternates enhancement will suggest using the Alternate.

BOMAltPL

As shown above, an MO is created for SHIFT ASSEMBLY and there is a shortage of the Primary Item, NUT-GCHROME.  The BOM Alternates enhancement checks if there are alternates specified for that Item on the Picklist, and if so, it checks for available inventory.  Here there are 10 available, and the MO needs 4.  Double-clicking on the item automatically updates the Picklist to swap the alternate in for the primary item.

Second, the BOM Alternates enhancement integrates with MRP where it automatically adjusts suggested POs for the primary item based on availability of alternates.

BOMAltMRP

The BOM Alternates enhancements pegs each Suggested PO to locate Picklist shortages which can be met with an assigned alternate.  When there is available inventory of the alternate, it adjusts the Suggested PO quantity accordingly.  As shown above, a shortage of the Gold Chrome Nuts was adjusted down from 4 to 2 because of available inventory of the Black Chrome Nuts.

The BOM Alternates enhancements adds a lot of useful life to the BOM Alternates setup available on the Dynamics GP Manufacturing Bill of Materials.  It will help you keep production moving by quickly swapping alternates for primary items when there is a Picklist shortage, and it will reduce inventory carrying costs by driving usage of alternates before re-ordering primary items.

by WilloWare

 

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