 SCRAP CALCULATION VERIFICATION

Hi, Has anybody used the scrap % facility in production BOM and Routing for Microsoft Navision 3.6. I have tried bom scrap = 5% , routing scrap =10% component qty per finished goods =1.2 qty of finished goods on sales order = 2375 After running the planning worksheet in Manufacturing the prodution order qty for the component = 3278 Less 5% for bom scrap 3278 x 5% = 163.9 Gives Qty =3114 less 10% for routing scrap= 3114x 10% = 311.4 That gives Qty = 2802.69 Where as actually for producing finisihed goods qty = 2375 Components Required = 2375 x 1.2 = 2850. Can any one explain this. Best Regards,

Hi Surely it has to take the initial component requirement and add the percentages? i.e. I need 10 components and have 50% scrap therefore I need 15 components. Then taking your maths, I have 15 components and the scrap was 50% therefore I had 7.5 components to start with [:D]! the calculation works the other way: Components required 1.2 x 2375 = 2850 Scrap % = 15% 15% of 2850 = 2850 x 0.15 = 427.5 Therefore components required = 2850 + 427.5 = 3277.50 (3278 rounded) Does this help? One bone of contention is you could argue the 5% of the scrap on the BOM should be calculated on the 2850 (2993) and then the 10% of the routing on the resultant sum (2993 becomes 3292). Alternatively you could argue the applicaiton of scrap percentages in the reverse manner. However, if you know how it works you can tailor your scrap percentage to work it out correctly!

Hi, but furthermore 3278 - 492 (= 15 % of 3278) = 2786 of expected output, where you need 2850. So isn’t this the right calculation: 2850 + 17,6% = 3352, expected scrap of 15% = 3352 - 502 = 2850. Michael

Thank You Michael and Steven [:D]