Understanding the Cost Simulation
Use the Cost Simulation program (R30812) to calculate costs for discrete and process items based on hypothetical situations. The program updates the Item Cost Component - Add-Ons table (F30026) with the calculated simulated net-added and total costs. To calculate simulated labor, machine, and overhead costs, the Cost Simulation program calls the Cost Simulation - Routing Sheet program (R30818). After calculating all costs, the Cost Simulation program calls the Cost Simulation report (R30825) to print the cost information. You can also review simulated costs in the Cost Components program (P30026).
To retrieve a bill of material and routing, the program searches first for a bill for which batch quantity matches the accounting cost quantity. When the program does not find a matching batch bill, it uses the zero batch bill. The bill of material must have bill type M (standard manufacturing bill). Effective dates on components must be valid.
To enable the system to calculate cost components of type B and C:
The routing must have routing type M.
A routing operation must have a work center with rates in the Work Center Master table (F30006) for the cost component to appear.
The operation type code on the routing must be blank to indicate a normal manufacturing operation.
The effective dates on the routing must be valid.
The default as of date is the current date.
The R30812 program uses two temporary storage mechanisms to store the component item cost information and parent/component relationships of the bill of materials (BOMs) it explodes. The storage mechanisms are cache which uses memory, and temporary work tables which use a database.
The caches are very effective when the number of records is small. The cache becomes inefficient with large data sets, typically when the number of records stored in cache exceeds approximately 10,000 entries. Thus, cache should be used for processing smaller data sets. A temporary work table should be used for processing large data sets to avoid exceeding memory constraints in the system.
The cost simulation is affected by:
Cumulative yield.
Operation scrap.
Master routings.
Unit of measure conversions.