How to keep track in Navision where purchase a sheet of steel with measurement of 10” x 20”, where this steel may use 5” x 5” in the production and the remaining of the steel will then return back to warehouse. Should I maintain a separate item for each measurement or use the UOM or Item Variant code? Any idea?
Hi Yvonne Does the 10" x 20" sheet ALWAYS produce a 5" X 5" cutt off that can be reused in other items? What version of Navision are you running?
Hi Steven, Thank for your reply. As this is a Make To Order environment, the cutting size always NOT standard. That why, they may create a lot of item. I am running on version 3.10 as well as 3.60
Hi Yvonne I do not think I made myself 100% clear. If you make an end item in the make to order environment the production BOM will have the 10" x 20" sheet specified in the BOM, if this end item always produces a 5" x 5" offcut that you can reuse in other production processes the 5" x 5" sheet could be included in the BOM with a negative quantity (1 if you have an item card for the 5" x 5" sheet). As you are make to order these BOM’s will be defined individually, and then you can define these negative quantities against the BOM. I suppose what I should have said is if you make item “X” with a 102 x 20" sheet in the BOM do you ALWAYS get a 5" x 5" offcut? Failing this you could always re-stock through the consmption journal with a negative entry, picking the correct item depending upon the off cut remaining after teh work if it really is random as to the offcut (but this should not really be the case) and this will then need to be taken into consideration with your flushing methods of other components in the system if this has to be handled manually. Let me know your thoughts.
Hi, In some cases i found usefull to keep inventory in Sq. Ft. In this case you can setup purchase Unit of Measure 10x20 = 200 sq. ft. In BOM you can setup 25 sq. ft. or you can create Unit of Measuse 5x5 = 25 sq. ft.
This is a common and very old problem for dimensional items cut from other dimensional items. Because the requirement for the 5" x 5" could use a sheet that is any dimension 5" x 5" or larger, the amount of the amount of material returned to inventory (commonly termed “drop” in the steel fabrication industry) could be variable. However, because this could be virtually any dimension, an old inventory control trick is to reclassify the drop into useable items from a fabrication viewpoint (not necessarily accounting); these are usually classified by square measure. Therefore, the drop could be reclassified into 2 x 3, 3 x 5, etc. An item that was 3 x 4 would be classified as a 2 x 3, since it is not as big as 3 x 5. Additional work has to be done to establish the correct cost. The reason this is usually done is to address MRP, because while 5 x 5 results in 25 sq. inches, you can also get 25 square inches out of a 1 x 25 piece, which won’t make a 5 x 5 piece. There’s a lot more to these concepts & we’ve seen these address in numerous ways over 25+ years, so it’s difficult to summarize in this form. Maybe there’s a concept here that may provide an inspiration.