How to Use SubContracting in SAP APO
Executive Summary
Subcontracting is a specific process where manufacturing is performed outside of the company’s plants.
There are several subcontracting process flows.
There is extra complexity to subcontracting that must be understood before implementing subcontracting in a system like APO.
Subcontracting can be considered a type of bi-directional planning.
Introduction
Subcontracting, in supply chain management, is the outsourcing of a manufacturing process, where the OEM (original equipment manufacturer) provides some of the parts or a semi-finished good to the subcontractor. The parts may be sent from an OEM facility or their suppliers.
This is the first subcontracting …