Question

Inventory of cut raw materials

  • 8 November 2021
  • 4 replies
  • 284 views

Badge +2

Hello there,
For example, FULL ROUND(BILLET) Ø18 C1040K, which is kept in the inventory in mm but invoiced in kg. We have raw materials. This raw material is taken in 6000mm length and is consumed by cutting. Again, the cutting amount is given in mm in our work orders. When we keep it in a single inventory card, we have difficulty in finding the workable size because we see the total mm length. Our example scenario is as follows.
There are 3 pieces of Ø18 C1040K bought in 6000mm length. It was used over time and 3 iron bars in the form of 80mm, 50mm and 20mm remained. When there is a 90mm cut in my work order, the available amount is seen as sufficient, but there is no actual amount available. Since mrp sees the total amount when it is run, it does not create a purchase request. We cannot overcome this problem with W/D/R because mrp does not see it. We do not want to open separate inventory cards for each size. These opened duplicate cards make the system unmanageable.
What we are wondering is, what kind of solution is used for such cut raw materials in IFS. Is there a structure like W/D/R where we can add the product in parts and set whether it is seen by mrp or not? I request your valuable feedback on the subject and wish you a good work.


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4 replies

Userlevel 5
Badge +10

I had the same issue in another company. The solution I came up with is to make inventory items of 500mm upwards for rest material. And a separate place in the warehouse for the fast running inventory items.

And we didn't want to create items smaller then 1000mm since the likeliness that these items are used is very low. So we got 1000, 1500, 2000, 2500 etc. but the items in the part 1500mm where minimum 1500 but could very well be 1650mm.

Everything under 1000mm was scrapped (sold to external party) did cost too much to keep inventory for it and there where handlers better in handling smaller quantities. (also cluttered the warehouse too much)

Hope this gives you a direction, as you are probably in the steel business with conversion rates that do not equal scientific equations this is hard to do. We decided to keep trading logic outside of our internal ERP system and only used them in pricing logic, so custom fields for sales rate calculations on the customer order.

Userlevel 6
Badge +14

We use a combination of wdr and availability control id. wdr to inform on the real size of the piece.

Every night we run a job that set availability control id based on some criteria's.

 

 

Badge +2

I had the same issue in another company. The solution I came up with is to make inventory items of 500mm upwards for rest material. And a separate place in the warehouse for the fast running inventory items.

And we didn't want to create items smaller then 1000mm since the likeliness that these items are used is very low. So we got 1000, 1500, 2000, 2500 etc. but the items in the part 1500mm where minimum 1500 but could very well be 1650mm.

Everything under 1000mm was scrapped (sold to external party) did cost too much to keep inventory for it and there where handlers better in handling smaller quantities. (also cluttered the warehouse too much)

Hope this gives you a direction, as you are probably in the steel business with conversion rates that do not equal scientific equations this is hard to do. We decided to keep trading logic outside of our internal ERP system and only used them in pricing logic, so custom fields for sales rate calculations on the customer order.

Thank you very much for taking the time to reply. Your ideas will help us find a solution.

Badge +2

We use a combination of wdr and availability control id. wdr to inform on the real size of the piece.

Every night we run a job that set availability control id based on some criteria's.

 

 

We are working on your proposed solution with our consultants. Thank you so much for taking the time to share.