Question

Inventory Pieces/Remnants - Any ideas on best way to deal with this?

  • 3 February 2022
  • 4 replies
  • 76 views

Userlevel 5
Badge +1

We are in the metals industry, and one of the somewhat unique aspects of our business from an ERP perspective is that sometimes we will cut pieces of material that we sell into smaller pieces, per our customer’s request. So as a simple example, let’s say you have a 20ft x 20 ft piece of aluminum plate, and the customer asks for a piece that is 16ft x 18ft. We will cut that plate to size, and then have a remainder (what we call a remnant or a piece) that is left over. Sometimes we will directly scrap this remainder (not keep it around), and other times we will keep it on hand and sell it to another customer, or use it to cut another piece for a customer who may require a size smaller than that previously cut piece. We need to maintain heat/lot tracking of these pieces from the parent item.

Does anyone have any clever ideas about the best way to program this in Acumatica? You could obviously create a new item every time you create one of these pieces, that is the exact dimensions of the piece. And you could have some sort of reference system to link back to the parent item.

Since these are all one-offs, should they be stock or non-stock items in Acumatica? We will still need to track them in the warehouse.

I’m mostly interested in how to model this as a data problem in Acumatica (versus UI concerns), but any creative ideas on how to handle it up and down the stack would be appreciated.

Keep in mind that while MRP is probably an answer to this problem, it may be overkill. We are literally just taking one thing, and making it two (or three or four), with all the same characteristics as the parent (except its new size/shape).

Thanks,

 

Jonathan


4 replies

This is a pretty classic problem in all MFG ERP’s and I don’t know if I’ve ever seen anyone come up with a great solution, that isn’t super transaction intense.    Some blend of human material review would seem to be required, along side a hard allocation of a remnant to a production order.   I’m following this discussion hoping more will chime in! 

Userlevel 3
Badge

Is your 20x20 plate it’s own stock item number?

Could you issue .75 of it to your production order thereby leaving 25% in stock to be used later?

Userlevel 5
Badge +1

@ltussing03 Sure, we could do something like that. However, I think we want to be able to separate full stock items from remnant inventory. For example, if you have 4x .25 of a stock item, that is not equivalent to 1 of that same item. So there are some challenges with how we track the inventory in the system, and how it exists out in the warehouse.

We don’t want to create a new stock item for every random remnant. I am leaning towards creating a “catchall” stock item that will aggregate remnants from different stock items that have the same properties except for their size (i.e. a 12ft rod and a 6ft rod are exactly the same except for their length...once cut pieces from both go into a single stock item where one of the inputs is the length of the item. This way there is a single item that aggregates these remants, but you can still keep track of unique properties, like the custom length of the remaining piece).

I’m still thinking this through. But that’s how I’m leaning.

Userlevel 6
Badge

Hi @rosenjon were you able to resolve this issue? Thank you!

Reply


About Acumatica ERP system
Acumatica Cloud ERP provides the best business management solution for transforming your company to thrive in the new digital economy. Built on a future-proof platform with open architecture for rapid integrations, scalability, and ease of use, Acumatica delivers unparalleled value to small and midmarket organizations. Connected Business. Delivered.
© 2008 — 2020  Acumatica, Inc. All rights reserved