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Operation scrap is maintained for 2 material components in the BOM. One component is also subject to assembly scrap. The component quantities must be adjusted to include the scrap.

Quantity of material RB to be produced
(required quantity)

 

Assembly scrap:

1,000 pieces

 

 

10 % (pieces)

Component 1:

Operation scrap:

Net indicator:

® Scrap quantity

 

no entry

not selected ®

assembly scrap used in calculation

100 pieces

Component 2:

Operation scrap:

Net indicator:

 

® Scrap quantity

 

1 %

selected, therefore assembly scrap not used in calculation

10 pieces

 

Before component 2 is built into the assembly, the faulty assemblies are taken out of the process, and only the operation scrap is calculated.

The quantity for component 1 is for 1,100 racing bicycles to be produced. The quantity for component 2 is for 1,010 racing bicycles to be produced.

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