A “remanufactured” item is a used version of the item that has been refurbished for resale. Rebuilt engines, for example, are remanufactured items. A remanufactured item’s bill of material consists of the used version (“core”) as well as the parts needed for refurbishment. The routing is confined to the steps needed in the refurbishment process.
Remanufactured items need two additional item IDs
Remanufactured items need two additional item IDs
•A second item ID is needed to represent the used core item that gets returned from customers.
•A third item ID is needed to represent the remanufactured item, which is the refurbished version of the used core item.
Consider appending a suffix for parallel IDs
A common part numbering strategy is to append the standard item ID with a suffix to identify the used core and remanufactured versions. For example, all used core versions can be appended with an ‘X’ or ‘-X’, etc. and all remanufactured versions can be appended with an ‘R’ or ‘RM’ or ‘-RM’ etc. This way all three item IDs will be listed together on lookups, screens, and reports and will have consistent identification across all such items.
Make the used core version a P item
The used core version that gets returned from customers should be a P item because it can be purchased from customers and is a component in the remanufactured item’s bill of manufacturing. You may wish to create an Item Category for used core items so that they can be tracked separately on reports from their standard and remanufactured versions.
Make the remanufactured version an M item
The remanufactured version should be an M item because it will have its own bill of manufacturing. You may wish to create an Item Category for remanufactured items so that they can be tracked separately on reports from their standard and used core versions. A separate Item Category also enables you to assign unique Sales and COGS accounts by Item Category in the Account Assignments screen, if so desired.
Create a BOM for the remanufactured item
Create a BOM for the remanufactured item, using it as the BOM parent. Confine the routing sequences to the labor and subcontract processes required to refurbish the used core item. The components will consist of the used core version and any other components needed for refurbishing the item.
Used parts can be outputs
If during the refurbishment process you replace some used parts with new parts and the used parts can be stocked for use elsewhere, the used items can be specified as BOM outputs. Make sure that used items are given a separate item ID to distinguish them from new versions. If you wish to give used items a cost, assign an appropriate Cost Ratio.
Check availability when taking an order
Unlike standard manufactured items where MRP automatically generates additional supply jobs as needed to replenish net demand, the supply of remanufactured items is constrained by the supply on hand, which can be the remanufactured item itself or used core versions that can be refurbished to order. If used core versions are not on hand, there may be no way to fulfill the order until additional supply materializes.
MRP generates remanufacturing jobs in the normal fashion
MRP generates jobs for remanufactured items as needed in the normal fashion. Remanufacturing jobs are added to the master schedule and are released to production when material becomes available.
Modify job details as needed during production
Remanufacturing jobs are subject to modification due to variations in condition among used core items. Some may require additional parts or processes. You can freely modify job details during production to account for extra components, outputs, or routing processes that may be needed.
