Re: Cost Contamination

Mixed Cost is always a problem.     Then when doing resupplies this cost 
will get averaged / copied to other facilities.     We modified the 
averaging costing to  consider all buckets.        On a resupply that is 
produced in one Facility then resupplied and/or purchased directly for 
that facility,    We made sure that the cost is rolled up to bucket one 
and averaged there. 

The problem we experience is with BPCS average costing.  It will average 
bucket by bucket level by level so a purchased item with this level cost 
bucket one and the manufacturing cost which will have previous level 
bucket one.  Tries to average then you end up with bucket one both levels 
having cost.

Cost roll-ups also can cause problems with a Bill of Material in one 
Facility and a purchased price in another.    We don't use DRP,   DRP 
might be able to handle part of the problems.


Roger Henady
Thorco Industries