Thanks for the clarification Pierre,
I agree that the inventory declaration form logic should prevent
materials from being created as "by-product" inventory items. The
question is how to properly define "by-product". In Jacopo's pizza
scenario, the tortilla technically represents a finished good (though
different than the PRun good). But I think you are saying that the form
should only be used for stocking-in degradated by-products such as
processed-dough. If so I agree with you. Otherwise it seems as though
the declaration form would need to incorporate logic to check that there
is enough left over dough to actually make the tortilla. But that still
seems incorrect since the production run tasks to produce the tortilla
aren't being captured. Therefore it seems more correct to
return/stock-in the dough as materials with a lotId and then
issue/stock-out that lotId for a separate production run to create the
tortilla.
Also, the inventory declaration form allows the production run finished
good to be produced which seems to violate the same rule as the
materials mentioned above. I think the "Production Run Declaration And
Produce" forms above should be used instead for stocking-in finished
goods. I think the service that handles that form always sets the last
task as the one that produced the PRun finished good. Based on that
logic, can we agree that the last task should be the only one capable of
producing the finished good and therefore prevent the PRun finished good
from being declared using the inventory by-product declaration form?
On 03/07/2014 06:34 PM, Pierre Smits wrote:
Christian,
Being able to define an unlimited number of by-products (and setting the
associated quantities) is not incorrect. By-products are not the (surplus
quantities of the) components issued, nor are they other end products.
If pizza is the intended end result of a production run, then that is the
end product. If you have issued more dough than needed, than the surplus is
returned to inventory (for convenience sake other aspects like quality de
If a bolt with 2 washers and a wingnut is your intended end result of a
production run, then that is the end product that goes into inventory. And
it is limited. If you have issued more washers than needed in the
production run, then the surplus is returned to inventory (as a correction
on the issuance).
In the pizza analogy, the surplus dough (let us say 100 grams) can be
regarded either as a returnable good (correction on issuance 100 grams) or
as a by-product (e.g. waste as a result of quality degradation) that can
potentially lead to cost recovery. In the latter case, the by-product
cannot be the component issued but must be different product.
Regards,
Pierre Smits
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