Manufacturers keep track of the parts or ingredients that go into making products, in addition to the products themselves. The parts and ingredients are purchased from suppliers and shipped to company storage locations in the same process used by wholesalers and distributors, except manufacturers then assemble the parts (discrete manufacturing) or combine the ingredients (process manufacturing) in work orders to create the products that the company sells.
In the discrete manufacturing case, the products are built from a bill of materials that defines the required parts. In the process manufacturing case, the products are created from formulas that define the quantities of ingredients required to create a given quantity of product.
Finale makes it quick and simple to create finished products for light assembly or manufacturing with the Build operation. Within Finale, you first the Bills of Materials (BOMs), which will track the inventory items needed to build completed goods. The Build operation will create created the finished good in the software while decrementing the required component qty listed in the Build of Materials.
Lots and serial numbers
Some types of products have expiry dates, or serial numbers, or other properties identified by lot or batch. Thus stock may not just be quantities of a particular product, but of a particular lot. For these types of products, the stock item in the block diagram above encompasses the properties of the particular stock item instances that vary from batch to batch or item to item.
Stock control software
There is a lot in common between manufacturing and wholesale and distribution on the sell side of the inventory management process, so stock control software tends to be the same across these businesses for stock on hand, whether it was purchased from suppliers or manufactured internally.