Subinventory design

A subinventory is a division within an organization. It controls whether stock is available to plan and reserve, whether it is tracked as an asset, and where things physically are. The key attributes: asset versus expense, quantity tracked, reservable, whether it is included in available-to-promise, and the accounts associated with it. The standard pattern: raw material, work in process, finished goods, quarantine or inspection, and scrap. Most manufacturers need approximately these five and then argue about the sixth. The granularity trade-off. More subinventories give finer control and finer reporting — and mean more transfers, more operator decisions, and more places for stock to hide. Aim for the fewest that support the required controls. The non-nettable question. Quarantine stock should generally not be available to planning. Getting this wrong means the system plans on material that cannot be used — and the shortage appears on the shop floor, not in the…

In this module: Module 4 · Inventory Organizations and Plants

1. 1What we are building
2. 2The decision you cannot undo
3. 3The organization object model
4. 4The item master organizationFree preview
5. 5Organization granularity — how many?
6. 6Running the facilities design workshop
7. 7Four worked plant models
8. 8Creating the item master organization
9. 9Creating an inventory organization
10. 10Organization parameters
11. 11Enabling manufacturing on a plant
12. 12Subinventory design
13. 13Locators
14. 14Inter-organization relationships
15. 15Proving the structure works
16. 16What breaks
17. 17Lab briefing: the Halden Works structure
18. 18Lab solution walkthrough