A manufacturing company produces equipment in which several subassemblies are now also required for sale as replacement parts. To satisfy both types of demand, the company should first:
A.
review their part numbering and bills of material (BOMs) to identify the subassemblies differently when sold as an end-item.
B.
review the production process to determine the cost to produce the subassemblies when sold as an end-item.
C.
review the timing and quantity requirements for the subassemblies demand for production versus when sold as an end-item.
D.
review the warehouse system to ensure that subassemblies for production can be segregated from those to be sold as an end-item.
The correct answer is:
**A. review their part numbering and bills of material (BOMs) to identify the subassemblies differently when sold as an end-item.**
When a manufacturing company needs to satisfy demand for subassemblies both as components for production and as replacement parts sold directly to customers, the first step is to **review part numbering and bills of material (BOMs)**. This ensures that:
- Subassemblies used in production are clearly distinguished from those sold as end-items.
- Inventory and production systems can accurately track and manage the different uses of the subassemblies.
- The company can avoid confusion in procurement, production, and sales processes.
This step is foundational because it establishes the necessary structure in the system to handle the dual demand for subassemblies.
The other options are important but should come after the part numbering and BOM review:
The best answer is D. review the warehouse system to ensure that subassemblies for production can be segregated from those to be sold as an end-item.
Explanation:
When a subassembly is used both in the final product and as a spare part, the company needs to manage inventory differently to ensure that subassemblies intended for production are not used to fulfill customer orders for replacement parts. Separating the subassemblies in the warehouse allows the company to accurately track and fulfill both types of demand.
C. review the timing and quantity requirements for the subassemblies demand for production versus when sold as an end-item:
While reviewing timing and quantity requirements is part of overall demand management, it's secondary to the physical segregation of subassemblies in the warehouse. The warehouse system needs to be adjusted first to ensure proper inventory control, after which the timing and quantity requirements can be refined based on the segregated inventory.
reviewing the timing and quantity requirements for the subassemblies demand for production versus when sold as an end-item ,this approach addresses the immediate challenge of balancing and forecasting dual demands, which is fundamental for subsequent steps like cost analysis, inventory management, and logistics planning.
Supply chain management and logistics. Ensuring that the warehouse system is set up to segregate subassemblies intended for production from those meant to be sold as end-items is essential for effective inventory management and order fulfillment. This step helps prevent inventory mix-ups and streamlines the process of meeting both production and replacement parts demand.
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