Executive Summary

Modeling supply chain activities for a manufactured item involves item master, bill of material, and optional routing information. The item master includes company-wide information (such as the item number and master bill identifier) and location-specific information (such as the planning data). A master bill defines the components to build a manufactured item. A master routing defines the work centers and operationsboth internal and externalto build a manufactured item. Planned engineering changes to the master bill and routing can be specified, and each production order has an order-dependent bill and routing. Suggested production orders are based on location-specific planning data such as the production lead-time and reordering policy. In particular, a make-to-order manufacturing policy determines whether suggested production orders are linked to sales order demand. Standard costs for a manufactured item are calculated based on the item master, bill, and routing information. The case studies illustrated variations in manufacturing environments, including virtual manufacturing, by-products, authorized recipes, cut-to- size material, and the use of engineering versus production bills of material.