[ERP R12] WIP - COMPONENT YIELD Vs. COMPONENT SHRINKAGE

COMPONENT YIELD Vs. COMPONENT SHRINKAGE

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1. Component Yield.
A component yield factor can be entered on the BOM. The navigation path
to do this is Bill of Materials -> Bills -> Bills -> Component Details
alternate region. The default is 1, indicating 100% yield (no loss or
gain).

The gross requirements are divided by the yield factor to generate a
higher component requirement.

New Component usage = usage / yield factor

If 10% of raw material is scrapped in production, then the yield factor is
90%. Component usage for a demand of 100 would be 100 / .90 = 111 (rounded).

Note: You cannot enter component yield for an option class item or for
any components of a planning bill.

2. Component Shrinkage.

In MRP/MPS the shrinkage rate attribute can be used. The navigation path
to do this is Inventory -> Items -> Master Items -> MPS/MRP Planning
alternate region.

Note that a shrinkage rate must be less than 1 (<1).

For a particular inventory item, you can define a shrinkage rate to
describe expected scrap or other loss. Using this factor, the planning
process creates additional demand to cover shrinkage requirements for an
item in order to compensate for loss and maintain supply.

For example, if there is a demand for 100 and a discrete job for 60, then
a planned order would be generated for 40 units to meet the net
requirements, assuming that there is no shrinkage.

If a shrinkage rate of 20% is applied, you assume that you will lose 20%
(or yield 80%) of the current discrete job quantities. For the discrete
job of 60, the net supply is 48 (60 * .80). Since you have a total demand
of 100 and a supply of 48, from the discrete job, the net requirement is 52.
In order to meet the total demand of 100, a suggested planned order of 65
will be recommended to account for the 20% shrinkage ( 52 / (1 - .2) = 65).

Inflated planned order = demand / (1 - shrinkage rate)
Shrinkage demand = [demand / (1 - shrinkage rate)] * shrinkage rate
=> 上述的算式表示依據Shrinkage換算回Shrinkage Demand
Total demand = original demand + discrete job shrinkage + planned order
shrinkage
Using the above example, we have a total demand = 125 (100 + 12 + 13)
=> 也可用 Total 100 Demand / ( 1- 0.2 ) = 125 來計算
Total supply = discrete job + planned order (125 = 60 + 65)

3. Difference.

The difference between shrinkage rate and component yield is:
a) for shrinkage rate, Oracle Master Scheduling/MRP applies the same shrinkage rate to every item on the bill, and
b) for component yield, you can vary the component yield factor for each occurrence of an item on a bill.

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Reference ：Oracle Metalink Document No 102881.1