Job Materials - Scrap Factor

Enter the percentage (in decimal form) of scrap expected when using this material for the operation. When a material is cross referenced, the system adjusts the quantity of the job or PO created by the scrap factor. You can also use this field with MRP or APS when planning the amount of this material that is required by the job.

The system applies the scrap factor only if the Apply Scrap Factor parameter is enabled on the Planning Parameters form.

Example:

From experience, you are aware that this material almost always has a scrap rate of 10% when used as a component of this job type. Enter 0.1 as the scrap factor. If the job requires 100 of these items without any scrap, a cross-referenced job would increase the quantity released to 100 / .9 = 111.