Re: Defining a Product Structure

The key here is not so much the 10 pound cut piece. What is being produced is 
the 2 pound piece with a .5 pound scrap, or to put it in MAPICS terms, an 80% 
yield factor per piece.

The BOM 2.5 lbs per end item to be produced. The run lot size would be 4, and 
the yield factor on the router would be 80%.

Keeping in mind that you have a 10lb piece required, it might be best to have 
the 10lb piece be a phantom part number in the bill for planning purposes, 
then MRP would call out a percentage of the cut phantom even if you only had a 
requirement for 1. If you had a requirement for 1 without a phantom and the end 
item required lb. of metal rather than the phantom, planning would want 2.5 
lb. of metal, no the 10lbs lot size run.

Dennis Guy Vaillant