Let me tell you about flushing raw material in Microsoft Dynamics NAV Manufacturing check this. A client of mine was concerned about the high stock levels. His manufacturing business was not forced to stop production due material shortages. I inquired and learned that material consumed in manufacturing was not entered into the software until the product was complete. Because the material was not recorded in their software until after the product was completed, the actual quantities were not correct by several days or even weeks.
Because the buyers knew that the material on hand was more than what was actually available, they purchased extra material. The buyers didn’t know the exact quantity of material available so they ordered more raw materials in order to avoid shortages. My client asked me what I would do.
I suggested to my client that he adopt a forward flushing method of material consumption. The software could be set up to do this automatically. Forward flushing would reduce the inventory of raw materials as soon the production order is released to the shopfloor. This would allow the software to have a greater inventory of available raw material than it actually had at any time. A buyer could use the software to help him or her decide what to purchase.