There is nothing inherently wrong with manufacturing and shipping in
the same warehouse. And there is nothing obviously wrong with your
setup, based on what information you provided. That being said, yes,
most organizations today would make them separate warehouses.

Planning considerations for same warehouse:
- All material is nettable; MRP will see all on-hand unallocated
inventory and plan accordingly
- If you maintain a service parts inventory (components as sellable
items), this would be best as a separate warehouse, for planning,
sales, and reporting purposes.
- If the warehouses are physically separate and end-product requires
any amount of transit, create a separate warehouse to distinguish
items available for allocation.
- Demand (forecast) is captured by warehouse, so if you have any
specialized demand or order requirements, use separate warehouse to
distinguish them.

Planning considerations for same facility:
- If similar product is manufactured in different locations or under
different conditions such that planning is affected (e.g. different
BOMs, different order policies, different planning calendar, etc) then
create separate BPCS facilities
- If shipping warehouse is treated as a distribution center (DC takes
and fulfills orders, mfg whs is responsible for resupplying the DC,
transit is required) then create separate BPCS facilities and
implement DRP.
- If material costs differ between physical facilites then create
separate BPCS facilities.
- Master planning and MRP are run by facility, so in general, any
differences in planning should be consideration for separate

I think you will be fine. The best advice I can give is to review
your planning data carefully - horizons, lead times, order policies,
demand codes, min balances, etc, and make sure your bills and
inventory are accurate.

Kevin Harper
Waterfall Data Solutions, Inc
(717) 982-2765

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