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We sell a product which either we can buy fully assembled from the supplier, or we can purchase the components and assemble the sellable product ourselves. 

Can both options be used for a single product or do I need to create two products depending upon whether we buy assembled or as components to assemble ourselves? 

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On the product Inventory tab, just check both routes Manufacturing and Buy. 

If you use the reordering rules, you can set the preffered route. This will be used to create order if you run the scheduled action.  Be aware that you need to assigne a vendor on the product (tab Purchase) in order to automatic get Purchase requisition or orders. Thhis will also be filled with your first manual purchase order for the product. And you need a BOM for the manufacturing route.

In this scenario I would recommend to stop the scheduled job to create orders, and instead use the transaction from Inventory-> Operation ->Replenishment, where you  an choose manually to manufacture or buy.

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