MFG/PRO 9.0 User Guide Volume 3: Manufacturing - QAD.com

74 MFG/PRO USER GUIDE — MANUFACTURING
Tip
If these conditions
are not met, the
item is planned like
a regular item.
Reviewing Product Costs
To verify that costs are correct for base process items and their lowerlevel
components, review costs using one of the following.
• Product Structure Cost Report (13.12.4). This report identifies an
item as a co-product or a base process.
• Co/By-Products Cost Report (13.12.7). This report shows you how
co-product costs were calculated from a base process and its
by-products.
MRP for Co-products/By-products
Because planned orders for co-products and by-products can be from
more than one base process, overplanning of some items can result. This
is because MRP plans each base process individually, based on
unsatisfied demand for its co-products, rather than evaluating multiple
base processes and delivering an optimum plan. Careful planning and
setup of these operations by the manufacturer is therefore essential.
Planning for By-products
MRP plans orders for a by-product as a result of creating planned orders
for a base process. By-product demand is not considered when planning a
base process, but unsatisfied demand for a by-product can result in a
normal planned order if the item is purchased, distributed, or has a BOM/
Formula code for a regular formula or product structure.
Planning for Co-products
MRP creates base process demand records from the unsatisfied demand
for a co-product. An item is a co-product if two conditions are met:
• It is manufactured—its Pur/Mfg code is Manufactured, Routable, or
blank.
• Its BOM/Formula code is a base process that has the item as a
co-product.
MRP evaluates the beginning inventory, demand, supply, and safety stock
for a co-product, and when there is unsatisfied demand, creates a demand