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Former Member
Apr 14, 2010 at 02:44 AM

Difference between Prod.PPM & a Subcontracting PPM

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Guys,

I am working on the following subcontracti ng Scenario:

1. First Point to be noted "WE NOT PLANNING FOR THE COMPONENTS" . PLANNING IS DONE ONLY FOR THE FINISHED GOOD (FGI).

2. Plant will only have Componay owned Components stock (i.e for instance if an FGI reuires components 1,2 & 3 then our Company Plant will maintain stock only for 1. Therefore when a demand of 100 units of FGI comes from a DC to a plant. Based on the PPM (which has BOM in it) the plant will supply the required Quantity of component (1) Stock to the Vendor & the Vendor will mange by itself the number of components 2 & 3 & finally supply's the FGI to the Plant.

In this Scenario what kind of PPM do we have to send accross to APO plant?

Is it a Prod PPM or a Subcontracting PPM?? (This option of Prod PPM & Subcon PPM is present in the Integration model.)

Please advice.

Best regards,

KING