Percent Scrap

Enter the percentage of unusable component material that is created during the manufacture of a particular parent item. During Distribution Requirements Planning (DRP), Master Production Schedule (MPS), and MRP generation, the system increases gross requirements for the component item to compensate for the loss. Enter percentages as whole numbers, for example, 5 percent as 5.0.

Note: Inventory shrink and scrap are compounded to calculate the total loss in the manufacture of a particular item. Accurate shrink and scrap factors support more accurate planning calculations.