Bryan
22nd June 2002, 18:39
Lets say I have 10 different end items, items 1-10. Each of these consists of a case
Each time I make a production run, I destroy 5 cases (part of the pre-production machine testing process)
So, my initial thought was to setup a scrap quantity of 5 for this component on each of the BOMs it is in. Here is the problem. Lets say I have the following production runs this week.
Day Item End Item Quantity Cases Destroyed
Monday 1 100 5
Monday 4 50
Monday 6 50 5
Item 1 and 4 use the same case (and so the machine does not need to be alterred), so I did not need to re destroy 5 more when I got to running item 4. Item 6 uses a different case, so I need to destroy 5 of these.
Day Item End Item Quantity Cases Destroyed
Tuesday 2 100 5
Tuesday 7 50 5
Tuesday 6 500
Item 7 and 6 use the same case, so I do not need to re destroy 5 cases when I switch from running 7 and start running 6. Item 2 uses a unique case.
My issue is with item 6. On Monday, I ran 50 and destroyed 5 cases. On Tuesday, I ran 500 and destroyed 0 cases. So I actually have 2 problems. Problem one is what to put in the scap field. One day I scrapped 5, and the next day 0. We want MRP to plan for extra cases so we are not short, but we do not want to overplan (in case we run these with another item which uses the same case, as in Tuesday). Problem two is what to put as the EOQ, for costing. If I put a scrap quantity on the case component for 5, then I will need an EOQ to distribute the cost over, so it does not put the cost of all 5 cases onto one battery. but how do I determone an EOQ? We are a make to order shop, and only build to what our demand is. That is why Monday we built 50 and tuesday 500.
Each time I make a production run, I destroy 5 cases (part of the pre-production machine testing process)
So, my initial thought was to setup a scrap quantity of 5 for this component on each of the BOMs it is in. Here is the problem. Lets say I have the following production runs this week.
Day Item End Item Quantity Cases Destroyed
Monday 1 100 5
Monday 4 50
Monday 6 50 5
Item 1 and 4 use the same case (and so the machine does not need to be alterred), so I did not need to re destroy 5 more when I got to running item 4. Item 6 uses a different case, so I need to destroy 5 of these.
Day Item End Item Quantity Cases Destroyed
Tuesday 2 100 5
Tuesday 7 50 5
Tuesday 6 500
Item 7 and 6 use the same case, so I do not need to re destroy 5 cases when I switch from running 7 and start running 6. Item 2 uses a unique case.
My issue is with item 6. On Monday, I ran 50 and destroyed 5 cases. On Tuesday, I ran 500 and destroyed 0 cases. So I actually have 2 problems. Problem one is what to put in the scap field. One day I scrapped 5, and the next day 0. We want MRP to plan for extra cases so we are not short, but we do not want to overplan (in case we run these with another item which uses the same case, as in Tuesday). Problem two is what to put as the EOQ, for costing. If I put a scrap quantity on the case component for 5, then I will need an EOQ to distribute the cost over, so it does not put the cost of all 5 cases onto one battery. but how do I determone an EOQ? We are a make to order shop, and only build to what our demand is. That is why Monday we built 50 and tuesday 500.