Shrinkage Factor and Planned Order Scrap
Hi,
We have problem with Shrinkage factor,
We have 5 process and we know expected loss on each Sub Assembly Products so we applied shrinkage factor on each product and we are expectation is
Product Number '5464' has Bom and given shrinkage factor as 0.01(1% Loss) and my demand is 1000. So when we run MRP it gives suggestion as
Manual Demand=1000
Planned Order Scrap=10
and asking to release 1010 Qty as Job Order. But we are expecting Job order should be created for Qty 1000 and Material Consumption should be 1010 but its not
happening.
We have 5 process and we know expected loss on each Sub Assembly Products so we applied shrinkage factor on each product and we are expectation is
Product Number '5464' has Bom and given shrinkage factor as 0.01(1% Loss) and my demand is 1000. So when we run MRP it gives suggestion as
Manual Demand=1000
Planned Order Scrap=10
and asking to release 1010 Qty as Job Order. But we are expecting Job order should be created for Qty 1000 and Material Consumption should be 1010 but its not
happening.
Is this Standard functionality, if yes then what is the usage of shrinkage factor?
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