AX 2012 Subcontracting Issue

Hi guys,
I am facing a process manufacturing – subcontracting related issue in ax 2012. The requirement is that during the production of item XYZ, a specific operation’s resource requirement is very dynamic. Let’s say 60,000 qty needs to be stitched in an operation but due to capacity restraints and order fulfillment date the only option is that 20,000 qty should be stitched in-house using worker type resources, 20000 qty should be outsourced to vendor A and the remaining 20,000 qty to vendor B.
Now the issue is that AX poses following restrictions while entering resource requirements for a route:

· Only 1 line can be created for each resource type e.g. resource and resource group type.

· Only one route can be opened for 1 item

· Finally Even if I create 3 separate production orders with 20k qty each as per my scenario, the route will be the same and the internal resources are attached to the route. Now during the production of outsourced orders the internal resources’ cost will also be added in the production whereas in actual only subcontracting cost should be applied.

If I use service type line items for outsourcing I face following problems:
• As I am creating formula for 1 pcs of FG, if I add 1 line with service item for vendor A and 1 line for vendor B in the formula then in the production order (with 60000 FG qty) pick list will show 60000 qty of service for each vendor, where in actual, as mentioned above only 20000 needs to be procured from vendor A and 20000 from vendor B.
• Lastly, as I mentioned this requirement is very frequent and sometimes the resource shuffling needs to be done during the production this might not be feasible to update/change formula line every time before running the production order

Awaiting your valuable responses

Waiting for suggestions guys

Hi Mohsin,

  1. Create 1 FG item and update Max order quantity as 20000

  2. Create 1 RM Item

  3. Create 1 Service Item

  4. Create Three BOM, 2 for different vendor and 1 for Inhouse

  5. Create Sales Order of 60000

  6. Generate MRP…will result in 3 Line for FG each 20000 and 1 line for RM for 60000

  7. Attached the respective Outsourcing (Vendor) BOM to FG 2 Lines

8.Approve two status then run the MRP again. RM line will change to 20000

This is just a kind of work-around considering Very simple business flow (No Route)

I thought This might help you. May be we can discuss in detail as well.