@AsahiNick where online did you find the first formula? To which field on which page did this refer?

The first formula wasn’t found in IFS Documentation or in the system, it was found using a BING Search looking for “Scrap Factor Calculation”

In IFS you do not calculate the scrap factor, it is manually entered based on various factors such as legacy information, i.e. the history of scrap for this part.

The only place I recall seeing any definition for any formula is in some long-gone training materials on Planning and Manufacturing that showed how the factor is used, not calculated.

Think of the scrap factor on the Inventory Part as “for every net requirement of this part, how much should I plan on buying (the gross quantity) to result in the net quantity after scrapping.”

So in your scenario above with a demand of 100 you need to buy 125 as you plan to scrap 20% of the 125 to net out at 100.

Like Matt says, the scrap factor is based on the amount you need to buy or manufacture based on scrapping a %age of the number you buy/make (consume as well if I recall correctly).

It is not based on the qty required, but is based on the qty required plus the amount of scrap.

In years gone by (as a customer), we spent hours trying to work this out testing with different scrap factors and quantities required.

Hi @AsahiNick ,

The same equation you found was available in IFS Academy course material under Material & Resource Planning course.
 

Additionally, the field description of the ‘Scrap Factor’ in Inventory Part Planning Data will also give the similar information.

Cheers!

Yohan