| Why would a company choose the Dynamics GP | | | | well in advance of the other items. So you have some |
| Manufacturing modules over the standard inventory | | | | items that would be described as being "Long lead |
| BOM? Mostly it depends on what you are trying to do. | | | | time." Let's further suppose that these parts are |
| Let's start with the basics of inventory control, and we'll | | | | expensive, critical, common or any combination of the |
| move forward from there. Assuming that you are a | | | | above. Now it becomes extremely important not just |
| company that is looking for inventory control from your | | | | to know how many I have now, but also HOW MANY |
| ERP and you do some kind of assembly or kitting of | | | | I WILL HAVE at some point in time in the future. This is |
| parts, you will want a BOM of some kind. The BOM is | | | | where Manufacturing modules come into their own. |
| necessary because when you assemble or kit your | | | | To be able to project my inventory, I need to be able |
| parts together (I am presuming you put them on a | | | | to actually see when I'm going to need it - not just |
| shelf) you need to show that you used the | | | | record at the time I use it. Recording how much I've |
| components you needed. This is usually referred to as | | | | used after I've built something gets me nowhere. |
| relieving inventory. | | | | Projecting when I'll use it (this is done with a document |
| In a very simple environment, where the delivery of the | | | | called a Manufacturing Order) allows me to project out |
| various components are pretty straight forward you | | | | my usage over a period of time. Simultaneously the |
| can simply order more when you get below some | | | | inbound purchase orders (which have receipt dates) |
| threshold. This is the typical reorder point method, | | | | and outbound sales orders (that have delivery dates) |
| which is further simplified with Kanban - which is a | | | | are compared with the requirements on the MO and |
| more visual and physical method. In any case, the | | | | you end up with a projected available on-hand at any |
| BOM in your ERP can relieve your inventory and you | | | | point in time. |
| can then keep track of what you need. | | | | This is the basis of MRP and the core reason most |
| Now let's consider the next situation, where some of | | | | companies use the Manufacturing modules for |
| the items you need for your assembly are actually | | | | advanced inventory control. |
| very difficult to get, and require that you order them | | | | |