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Former Member
Feb 22, 2009 at 11:23 AM

Scrap allowance in Planning raw mateial

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Dear all GURU,

we are planning raw material as per BOM quantity and scrap allowance to it.(ONLY SUBCONTRACT SCENARIO)

ex. bom says that Inhouse component 100 pcs needs 100 pcs of semi finished subcontract material and for that 100kg of raw material need to send to subcontract supplier (IDEAL situation and also as per drawing)

but as we all know there always be some addtional wastage of material due to setup of m/c and for initial parts loading..so between supplier and customer there is agreement of 5% allowance .

so as per this requirement if required inhouse component requirement is 100 PCs then MRP should plan for 105 PCS semi finished subcontract material and raw material to provide vendor for processing is also 105 KGs.(and BOM is same 100 to 100 to 100)

So please suggest

1) how to map this requirement for MRP.

2) how to know from the system that supplier is consuming more than 5% allowance.

Regards,

Vimlesh