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Author's profile photo Stefan Resag

Material cost estimates for other lot sizes

In this blog I would like to quickly show how material cost estimates can be based on lot sizes other than lot size 1. The big advantage is that then also list prices using scales are considered.

In my example I created a production model for product SR_PZ_001. Important to notice is that the BOO (Bill Of Operations) quantity is used as the lot size for material cost estimate quantity. In my example I use 10 each.

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For BOM component SR_BDN_001 used to produce SR_PZ_001 I created a price list with scales. Please notice that for quantities larger than 9 each the price is 3 USD instead of 3,90 USD:

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When now performing a material cost estimate the BOO quantity of 10 each is used as a basis and via BOM explosion the price for 10 each of component SR_BDN_001 from the list price of 3 USD is considered:

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      4 Comments
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      Author's profile photo Marián Plachý
      Marián Plachý

      Dear Stefan,

      nice blog, thank you. But when I change the quantity in BOO, variable duration of resources needs to be recalculated manually (in this example multiplied by 10), right? Or is there any possibility to recalculate these durations automatically by the system?

      Thank you for answer in advance.

      Regards,

      Marian Plachy

       

      Author's profile photo Stefan Resag
      Stefan Resag
      Blog Post Author

      Hi Marian,

      Thanks for your comment. I am not aware of a system supported way to recalculate the variable duration.

      Best regards,

      Stefan

      Author's profile photo Cody Sartony
      Cody Sartony

      informative. Thank you for the article

      Author's profile photo Carol Steffes
      Carol Steffes

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