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Question from dawrul on Jun 14 at 7:58 PM PP:
I'm looking for a help. i have a scenario where a raw material can be cut into two different raw materials.
Here is an example:
i have a bar (raw material - component) 9 m long which can be cut to
a) 6 m bar
b) and 2.75 m bar
So I use one bar A as an input, and results of operation=cutting of this bar are bar B and C.
Bar A, B and C can be used as a components in my MTO production orders...but I understand that this process of cutting the input component into two different components and then using only one in production process (MTO) and putting the other one into stock cannot be handled in one MTO production order where i have a finished good product.
Should i think about doing this in a seperate MTS producion order where I use one operation (cutting) with an input main Bar A as a component and a co-product Bar B and finish product Bar C.
By doing this, I will have an option to put Bars B and C into stock.
Am i correct?
Can i use co-product as raw material?
Any other suggestion how to handle this scenario?
I appreciate,
Dawid Rulkowski
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