Re: scrap percentages for MRP

["Terry Herrmann" <Therrman@xxxxxxxxxxxxxxxxxxxxxx>]

I'd suggest use of the standard yield on the supply panel of IIM to modify 
planned requirements in accordance with anticipated/known attrition.  If such 
attrition is not uniform through the componentry, the BOM approach may prove 
appropriate.  A purist would endorse root cause elimination of the variable but 
I'm not feeling particularly pure today.

>>> dbaird@nmtgroup.com 08/07 10:39 AM >>>
We are version 6.1 full cs running on AS400 v4r3.

We are looking to find some information on how to capture the cost of scrap 
within MRP systems. It has been suggested to us that scrap is captured in 
the bill of materials by inflating the quantity per unit by the scrap 
percentage. So a component with a quantity per unit of 1 and an average 
scrap rate of 2% would have a new quantity per unit of 1.02.

However this will have implications for the current system of inventory 
processing and control (which we are keen to avoid!). Is anyone out there 
currently using or aware of an alternative method? Ideally I think that 
there should be an additional field separate from the BOM that captures 
scrap percentages for MRP purposes.

If anyone out there can offer any guidance or assistance on this one, it 
would be very much appreciated.
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