Accepted Company overages on Sales Orders

I’m wondering how people handle building excess against customer orders for allowed customer overages. Example: a customer orders 100 parts, but we know they’ll accept up to 10% over. So, they’re OK if we ship 109 to them, but they’re not OK if we only ship 99. So, when we run MRP against that sales order, we really want our job to be for 110 pieces, not 100 pieces. If we lose some to scrap along the way - that’s OK. And, if we end up with more than 100 pieces at the end of the job - that’s actually good from a revenue standpoint!

Currently, the proposal on the table is to add that overage into the order quantity, as that’s what’s driving MRP. However, that means if we want to send a sales order acknowledgement, that will cause confusion. And, on the back end, if we don’t ship the entire quantity, we’ve got to train our shipping staff when it’s OK to ship complete to close the orders.

I would imagine there’s a way to have MRP be smart enough to produce the extra. So, I want MRP to recognize that the order quantity of 100 means create a job for 110.

A couple other pieces of info: parts are pretty much customer specific, so we know which parts allow a 10% overage, which allow an 8% overage, and so on. And, mostly we’re talking about make to order parts.

Thanks. I’m sure this isn’t a unique situation so I’m really interested in how others handle it.

It sounds like the orders are make-direct?

With make direct, it wants to make the exact quantity you have ordered. Maybe you can write a bpm to increase the production qty by 10% (or whatever) on the job after it is firmed and then recalculate production yield?

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