A manufacturer uses Dynamics 365 Supply Chain Management to create bicycle parts as a configure-to-order...

To describe the concepts for the requirements, you should use the following:

Redesign the manufacturing facility for the new facility capabilities: You should use the Discrete concept. Discrete manufacturing is a type of manufacturing that produces distinct items that can be easily counted, touched, or seen1. Discrete manufacturing is suitable for producing custom bicycle parts in an engineer-to-order model, because it allows you to create unique products based on customer specifications and engineering drawings2. Discrete manufacturing also supports complex production processes that involve multiple steps, resources, and materials2.

Configure for the engineer-to-order items: You should use the Supply policies concept. Supply policies are rules that determine how supply is generated for a product based on its demand3. Supply policies can be configured at the product level, the product master level, or the coverage group level3. For engineer-to-order items, you can configure a supply policy that omits them from any master planning process. For example, you can set the coverage code to None, which means that no planned orders are generated for the product. You can also set the replenishment system to None, which means that no replenishment orders are generated for the product.

1: What is discrete manufacturing? 2: Discrete manufacturing overview 3: Supply policies : [Coverage codes] : [Replenishment systems]