Hello,
I am faced with a unique challenge in using production orders in my business. I buy whole fish as raw material and we process them into two products: 1. Smoked Cutlets and 2. Raw Cutlets. I have created the four production stages for the smoked process. I am measuring the quantity in weight (Kg). Therefore, after cleaning, there is a drop in weight, after removing the entrails and fish scales. The smoking process also reduces weight through loss of water. The new weight after smoking drops by 60%.
HOW DO I ACCOUNT FOR THESE LOSSES IN MANAGER?
The second production process is Cleaning the whole fish and cut into cutlets which are sold as raw. This results in a small loss in weight.
HOW DO I CREATE THE SECOND PRODUCTION STAGES, SO AS NOT TO CONFLICT WITH THE FIRST PROCESS?
I wonder why you are trying to account for loss in weight. As you have described your processes, you need to define three inventory items:
Raw fish
Smoked cutlets
Raw cutlets
Production orders can be used to turn raw fish into either smoked cutlets or raw cutlets. The weight loss does not matter. And I see no reason to define production stages, because the output of one production order is not used as the input to another production order.
So, for example, a typical day might include these steps:
Purchase 1000 kg of raw fish.
Issue production order to produce 200 kg of smoke cutlets from a bill of materials of 500 kg of raw fish.
Issue another production order to produce 450 kg of raw cutlets from a bill of materials of 500 kg of raw fish.
All your raw fish are used. All your output is accounted for. There is no need to match total weight of inventory because the inventory items are different. This is like a furniture manufacturer who buys wood by the board and produces tables.
