External Processing in Production

External Processing in Production

During In House Production of Finished Goods , the semi finished goods (SFG) is a component of Finished Goods (FG) and the SFG is produced from a outside vendor. Production plant supplies the components require to produce the SFG to the vendor and carryout the in house production of FG.

This scenario is the production cycle for SFG from outside vendor

1. Generate MRP
2. Create PO for External Operation
3. Material Staging
4. Delivery Components
5. Receive Externally Processed Goods
6. Manufacture Goods
7. Payment to Outworker

Please refer below diagram 

Make To Order Business Process overview

Customer Sales Order is fulfilled through In House Production Order.

Produced garment is send from production plant to selling plant through delivery following intra company procedure.

Customer demand is fulfilled from the selling plant

1. Create Demand
2. Generate MRP
3. Deliver Components
4. Receive Components
5. Manufacture Goods
6. Deliver Goods
7. Receive Goods
8.  Deliver to Customer
9.  Receive Payment

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