Managing raw materials

Our manufacturing process uses a lot of bar stock raw materials, which
is stocked in inches. A machinist may saw off 42 inches of material
from a 60 piece of bar stock. We have a policy that any "drop"
(remainder) less than 36 inches goes to an open floorstock location,
where it is available for use but no longer shows in inventory. So, I
may have 500 inches of bar stock showing in on-hand inventory, but it's
all in cut pieces anywhere between 36 - 60 inches in length. If I need
a piece 54 inches in length, such a length (54 inches or longer) may not
exist in the available inventory of cut pieces. MRP wouldn't plan for
this 54 inch requirement, since it thinks I have 500 inches of raw
material available.



Does anyone else suffer this same problem? If so, how do you manage
your raw material inventory?



Thanks










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