Including Handling Allowances in MRP which is a fixed quantity, not a percentage

Hi,

Our industry seems to have a particular requirement.

In the cable manufacturing process, each steps consumes a fixed quantity of the manufactured product in the start-up of the manufacturing cycle.  This excess demand must be included in the planned quantity as it cascades down the indented Bill of Material.  The issue is that this fixed quantity per manufactured item, must somehow be added at each level in the BOM to ensure sufficient component quantity is manufactured to cover all the Allowance requirements in the levels above.  Please note that this is a fixed quantity and can not be a percentage.

In an example provided quickly in a recent discussion, it was determined that there can be up to an 8% scrap quantity produced by these allowances over the complete production processes.  This is currently being handled manually by the planners.

I have anticipated including the Allowance on the Item Warehouse, and adding it to planned quantities during the MRP cycle.  I'm not sure exactly how and where to add the allowances.  There are 3 User Exits in the planning run which I suspect could be used.  Where this is added depends on when the projected planned quantities are initially created.

If you have any ideas, or would like more information, please contact me through this facility.

Rgrds,

Alan
XA Consultant
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