Discussions
How to best manage assemblies and back-orders
I'm trying to figure out what is the best practice for managing inventory to build assemblies for back-ordered finished goods. Let me explain.
We are back-ordered 1,000 pieces of product X (an assembly).
Product X is an assembly of 20 components and sub-assembly 1 and 2.
Sub-assembly 1 is 5 parts.
Sub-assembly 2 is 30 parts.
Is Netsuite smart enough to know that I have 1,000 of product X on back-order and it needs to have enough parts for the sub assemblies to get caught up?
We are building electronics and some components for PCBs have 4-26 week lead times and we are trying to increase out our output. However, I keep running out of inventory. I'm managing inventory by "fake" building each assembly on Fridays to see that I have enough parts for the following weeks.