| Calculating estimated quantity |  |
| The estimated quantities of the materials of a production order are calculated in the following way: The exploded quantity is calculated, based on the BOM and the quantity ordered. The quantity planned input is determined. The estimated quantity is calculated, based on the net quantity, the quantity planned input and any scrap quantity or percentage defined for the material. Exploded quantity The exploded quantity is based on the net quantity in the BOM. For example, according to the BOM, 20 screws are needed to produce a box. 30 boxes are ordered. Consequently, the exploded quantity is 600 (=20x30) screws. Quantity planned input The estimated material quantity is based on the quantity planned input of the operation to which the material is linked. If the production order has no operations, the quantity planned input is simply the quantity ordered of the production order. The calculation of the quantity planned input is explained in topic Planned quantity to manufacture. Estimated quantity The estimated quantity is calculated with the following formula:
    Estimated quantity =
    (Net quantity x (1+ scrap factor/100%) + scrap quantity) x planned quantity factor
Where: Net quantity: required material quantity, disregarding scrap and yield. Scrap factor: scrap factor defined for the material in the BOM. Scrap quantity: scrap quantity defined for the material in the BOM. The planned quantity factor is defined by the following formula:
    Planned quantity factor =
    Quantity planned input of current operation/quantity planned output of last operation
This calculation is illustrated in Example of estimating materials. Related topics Production orders for purchased items Scrap Yield Link materials to operations |