Jobs needed extra ingredient qty on-hand beyond what we'll really need - salvage or something else?

For various reasons, for some of our jobs we prefer to be giving each production station a full box worth of raw materials instead of the say half a box worth that they’ll actually need to complete the job. So for example we’ll have a box with 40# of material in it. The job may only call for 80# total but because we’re producing it at 3 stations we actually need 120# to be on-hand when we start the job. Is there a good way to get Epicor to help us plan to have all 120# be on-hand for the job but at the same time know that we’ll only actually consume 80# of it?

Epicor support suggested we look into salvage material which looked promising but as far as I can tell doesn’t automatically take into account being able to re-use the salvaged quantity at the end of the job in for example a time phase requirements report. Are there any other alternatives (or am I simply missing something?)

TLDR;
For a bit more context in case anyone’s wondering why we’re trying to do this. We’re a non-profit that packages meals. Part of our work is done at off-site locations where we bring all of the necessary materials and volunteers package the meals. Because we may be a thousand miles away from our warehouse we need to make sure we are sending out enough raw materials to cover any potential issues. Additionally, some of the ingredients come in a 40 or 50 pound box and while we know each table may only need 25# of that box we still want each to start out with a full box. All this means that while the event may only need quantity A of an ingredient we might need to send quantity 1.5A. This makes life hard for our buyer because while he might see demand for 500# the warehouse is actually putting 750# on the truck and suddenly we don’t have as much available for other jobs as though.

We could just inflate the per unit required amounts in the job’s materials but since we sometimes use backflushing that’d result in the extra materials actually being consumed rather than coming back unused ready for a different job. It also doesn’t take into account that at the end of the job we’ll get back leftovers and thus should take that amount into account when planning what to buy for next week.

Salvage material looked promising since we could put down that we need say 1.5# per unit finished product but then also say that there is 0.5# salvage per unit. That gets the demand to show up correctly but unfortunately, even though you’d think that since we just told Epicor we’d get back 0.5#/unit in salvage, the time phase doesn’t seem to be able to then make the next logical assumption that at the end of the job a bunch of salvage will be available for use in another job. Sure, once we actually tell Epicor officially how much was salvaged the inventory is correct but in the meantime we’ve just ordered extra materials and now we just got an extra 250# back from a completed job and now we’ve got way more than is needed.

It sounds like you really need to do an issue and return.

I have seen this scenario for powder booths. You need three 40# boxes for
three booths to run which is the min qty to keep on hand. Then the powder
is kept in a separate bin location and issued using a misc issue or job
issue. When the boxes return to storage the remainder weight is returned as
a misc return.

The job could still call out a standard amount that is back flushed. This
standard amount goes negative in its own bin and is zeroed daily.

Several moving pieces, but the real inventory is kept in the issuing bin
location.

Brad

Thanks Brad.

Currently we do manually issue to the job the full amount of each ingredient that we’re actually sending and then return the leftovers when the job is over and the truck returns to our warehouse which works just fine as far as keeping inventory accurate and the actual job ingredient usage accurate. The problem is that it doesn’t help our buyer know how much he needs to have in stock. We’re sending out enough extra to each event/job that by the time we’ve issued for say 4 events we’ve actually sent a 5th event’s worth of material which is a problem when the purchase suggestions thought we had plenty for all 5 based on how much is strictly needed to complete the job. We end up having to keep a high minimum quantity to cover ourselves which isn’t ideal.

One option I’ve considered is to add some of these materials to the BOM twice - once for the amount that’ll actually be used (which could also safely be backflushed if desired) and again for a per unit “just in case” amount (that we wouldn’t backflush). That’d help make sure that right amount is on hand going into the job but still doesn’t help us keep track that a bunch is going to be leftover which leads us to end up buying when we don’t really need to.

If you are manually issuing sometimes, then I would suggest using the scrap amount and manually issue all of the time. It will bugger up your backflush, but sometimes you just can’t have it both ways.

Either that or set up a safety stock if that’s a possibility.

Thanks for the tips Brandon.

We’ve already got a safety stock setup but keep having to increase it to cover weeks with lots of events. Looks like our buyer may just need to do some of the necessary calculations outside of Epicor :frowning: