We have had several customers over the years ask for a Scrap Reclaim
credit.
Here is the premise of this request....
1) To make Part 123, we use 1 lb of material and have 0.1 Lb scrap.
The net weight of the part is .9 Lbs.
2) If the cost of material starts out at $4.00 per lb, and we get
paid $1.50 per lb. for scrap, this means we will get back $0.15 in
scrap value for every Lb of material we use.
3) If the cost of material doubles to $8.00 per lb, and scrap doubles
to $3.00 per lb, we will now get back $0.30 for every Lb of material
we use.
4) Customer's would like the difference between the $0.30/lb and the
original $0.15/lb.
We have always rolled the value of scrap back into our burden rate.
What do others do? Is there even a way in Vista or Vantage to figure
out a Scrap Reclaim Credit?
What are your thoughts on this topic?
credit.
Here is the premise of this request....
1) To make Part 123, we use 1 lb of material and have 0.1 Lb scrap.
The net weight of the part is .9 Lbs.
2) If the cost of material starts out at $4.00 per lb, and we get
paid $1.50 per lb. for scrap, this means we will get back $0.15 in
scrap value for every Lb of material we use.
3) If the cost of material doubles to $8.00 per lb, and scrap doubles
to $3.00 per lb, we will now get back $0.30 for every Lb of material
we use.
4) Customer's would like the difference between the $0.30/lb and the
original $0.15/lb.
We have always rolled the value of scrap back into our burden rate.
What do others do? Is there even a way in Vista or Vantage to figure
out a Scrap Reclaim Credit?
What are your thoughts on this topic?