Co-Products are a manufacturing process in which multiple finished goods or sub-assemblies are produced together in a single production process step such as a stamping or molding operation. In addition, this process consumes the same raw material concurrently. Co-Products are also known as multi-outs or reverse BOM's and are applicable to both process and discrete manufacturing.
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Co-Product Template Options
Templates may be integrated with templates setup in ERP or manually setup as described below.
For Plex ERP customers, Dynamic Multi-Outs need to be setup in order to integrate with DemandCaster.
Creating a New Co-Product Planning Templates
- Click "Utilities"
- Click "Planning Templates"
- Click "Add New"
Select Co-Product as the Template Type
There are two planning template options: Batching and Co-Product. To learn about batching, please review the Batching article.
- Select "Co-Product"
- Enter the "Name" of the template
- Then click "Filter" to select the sku's to include in the Co-Product template
Select SKU's to include
- Click the + icon to add a SKU to the template
- Enter the multiple of the SKU within the template. The multiple determine how many parts are produced with each production cycle.
- Determine if the template for the given SKU is its primary template. As a note, if a SKU has not been assigned a primary template it will automatically be assigned as a primary. For example, the third line had been issued to a template previously thus it is not assigned as a primary within this template. If you assign it as a primary, it will be automatically removed as a primary from the other template.
- Once all SKU's have been assigned, click the back button to save the template.
An asterisks displays which co-product template is the primary for a given SKU.
Important notes to consider!
- A SKU may have only one primary template assigned
- May be part of many templates (but only one can be a primary template)
- May be a finished good or sub-assembly
- Must be in the same location
How does the Co-Product process work
The logic works on a FIFO basis. Upon running a new requirement plan, the first SKU required sets the template to be used based on its primary template. It will then create requirements for all the other SKU's included in the template based on the multiplier value for each part.
If other SKU's in the template have minimums or batch sizes greater than the primary SKU, the quantities will be adjusted accordingly.
Consider the example below. A template has been created where SKU A, B, and C are included and each SKU assigned multiples. Each SKU are produced from the same raw material.
Planning Logic Overview
The requirement plan is run and the requirements for each SKU is generated with the following results.
Since Item A is needed first it will set the first order and the other SKU's will be brought forward with the appropriate multiples and their requirements recalculated for each subsequent planning bucket. This does mean the other items will be produced earlier than needed.
The multiplier is reviewed to ensure the output of each is balanced for each period. On September 2nd, since item B’s requirement increases to 75, item A’s and C’s quantities will also increase by the appropriate multipliers.
The sum of the above will set the requirements for the raw material offset by lead time. Each item will explode its requirements based on its BOM quantity. This is the standard MRP explosion.
The sum of the above sets the raw material requirements