Multi-Stage production

Hi guys,

We are producing products in a somewhat special way:

1.) first we order raw material X from third party A. The material is directly shipped to third party B, but billed to us.
2.) we then order a processing from third party B which uses the material X provided in step 1 and bills their processing fees to us. Party B ships the processed goods X-1 to party C. Party B always produces some scrap.
3.) we order another processing from party C which uses the material X-1 processed in step 2. Party C again bills their processing fees to us. Party C then ships the processed goods X-2 to party D. Party C always produces some scrap.
4.) we also order other material Y from party A which are directly shipped to party D.
5.) Party D forwards the goods X-2 and Y to Party E.
6.) Party E keeps a constant stock of X-2 and Y and assembles smaller quantities of X-2 and Y into Z and ships them back to party D. Also Party E produces some scrap.
7.) Party D forwards the assembled goods Z to party E
8.) Party E applies further processing to the goods Z and ships the processed goods Z-1 to our delivery warehouse F

Now I’m trying to model this little madness in erpNext under the following constraints:

a) we need to keep track of where the goods are in the individual processing step
b) we need to be able to send some form of purchase or production order to our parties A thru E in order for them to perform their activities
c) we need to have alerts / auto re-orders on the warehouse of party E. From there we need to order X including the initiation of processing steps X-1 and X-2, as well as Y
d) we need to have alerts / auto re-orders on the delivery warehouse F. From there we need to order smaller quantities of assembled good Z which reduces stock of X-2 and Y in warehouse E.
e) the whole process should be as simple as possible, making as few documents as possible necessary to be created.

Any advice on how to best model this scenario with different item types (purchase item / BOM / item with production order / etc…), auto re-order levels, what warehouses to create for which of the parties (e.g. do we need to separate incoming warehouse vs processing warehouse vs outgoing warehouse or can we use production orders on the same warehouse somehow) etc … is highly appreciated.

Thank you & Happy Easter!

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