Hello,
I was wondering if someone knows what the difference is between a production type formula and planning item? They appear to both serve the same purpose within the process.
Thanks
Hello Helen, in my opinion you can have the same final result with both of them. I will explain you the difference, as per my understanding, with an example.
Suppose that you finished product is not one thing, it is a group of things that were disassembled. So you have a chicken as your only component in the formula line, and you are going to obtain finally two legs, one breast, two wings and “others”.
Maybe you can consider the breast as your main product, so having in mind the formula concept you should configure it as:
Formula type: Breast item
Co-product: Legs, Wings
By-product: Others
When you report as finished the formula item Breast, all of the others are going to inventory together with the qtys you indicate.
Now having in mind the planning item concept:
Planning item: Disassembled chicken
Co-product: Breast, Wings, Legs
By-product: Others
Finally the same items are going to reach inventory, but as co-products and by-products, the planning item is not going to generate inventory, is like a container for the items to be disassembled.
The *** was automatically used by the site to replace the word b r e a s t, I couldn’t find/know any other word to name that part of the chicken, so I apologize if its use is not appropriate.
Hector,
Thank you very much, this helps a lot. I see then that we will have inventory as well for the formula type *** item and we would not have inventory for the planning item itself.
Heen
Yes Helen, correct. Regards!