Items are not always produced in a single process, and are usually produced through a number of processes. The item subcontract refers to contracting out a unified processes to produce an item to another firm. In some cases, a subcontractor is involved in the start-to-finish production, which is one form of Item Subcontract, but is especially called product subcontract, start-to-finish subcontract, or finished product subcontract. These subcontracts are strategically performed in setting B/M in such cases that especially professional facilities or techniques are needed and the company has no such facilities or techniques, the cost can be reduced, or the subcontractors should be nurtured. Thus after MRP is performed, the planning subcontract for item subcontract, if any, should be performed like the purchasing planning for purchased parts.


Related term: Subcontract
Antonyms: Process Subcontract