We are using Baan IVc4.

We have the following problem.
The Finished Product is made up of supplier assembly (material and labor) + components supplied by ourselves. Supplier will never pay for the components. Component's inventory level must be visible to our MRP.

A sales order is created for Finished Product. If it were not for the components - this would be a simple direct delivery. A direct delivery purchase order would be created for the Finished Product - and the supplier would ship directly to the customer. But it is at this point that the supplier consumes some of the consigned inventory - and completes the build of the Finished product.

I've thought about creating a warehouse to 'store' the consigned inventory - so that the inventory levels remain in the MRP. I could do a direct delivery process for the finished product. But how do I handle the issuing of the components to the manufacture process?

This is a direct delivery process with some subcontracting!

Does anyone have any ideas?

Thanks
Nicole

You could try to sell the finished product as a phantom item and therefore components will be issued on the sales order or backflush the items from the suppliers warehouse.

That could work - but the issue is that part of the material is drop shipped by the supplier direct to the customer. That inventory does not exist within our system. Only the consigned inventory does. So I would need some of the components of the phantom to be direct delivery and some to be backflushed.