<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/ti/onlinemanual/000029" xml:lang="en">
   <Header>
      <Title>Example of estimating materials</Title>
      <Keyword type="header" order="d1e2399973">
         <Level1>Calculating estimated material quantity</Level1>
         <Level2>example</Level2>
      </Keyword>
      <Keyword type="header" order="d1e2399978">
         <Level1>Estimated material quantity</Level1>
         <Level2>calculation example</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <ExampleSection>
         <SectionTitle>Example</SectionTitle>
         <Paragraph>A production order for
		  27 boxes is created. There is only one operation. Normally, 10% of the boxes
		  are rejected in the final quality inspection. That means that the yield is 90%.
		  To compensate for the anticipated loss of 10% of the boxes, the planned
		  quantity is set at 30 boxes.</Paragraph>
      </ExampleSection>
      <Paragraph>According to the BOM you
		need 20 screws to make one box. Some of the screws break or bend, while they
		are being screwed into the box. To replace these screws, 5% extra screws are
		planned: the scrap factor is 5%.</Paragraph>
      <List>
         <ListIntro>The calculation proceeds as follows:</ListIntro>
         <ListItem>Ordered quantity: 27 boxes</ListItem>
         <ListItem>Net quantity: 540 screws</ListItem>
         <ListItem>Yield: 90% (10% rejects)</ListItem>
         <ListItem>Quantity planned output: 27 boxes</ListItem>
         <ListItem>Quantity planned input: 30 boxes (=27/0.90)</ListItem>
         <ListItem>Scrap factor for screws: 5%</ListItem>
         <ListItem>Estimated quantity: 630 (= 540 x (1+5/100) x (30/27))</ListItem>
      </List>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000027" role="manual">Planned quantity to manufacture</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000028" role="manual">Calculating estimated quantity</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>