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Manufacturing- questions

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Posted on by CU09050652-0 3
Dear all,

what is the difference between lot size in the item card and the lot size in the routing page?  
Additionally, whenever I change on the routing page the time and the lot size, I must update the standard cost on the item card?
Because on the costing method I have set it as standard cost.

Thanks in advance!

Best regards,
Categories:
Manufacturing
  • Suggested answer
    Jun Wang Profile Picture
    Jun Wang 4,020 Super User on at
    Manufacturing- questions
    Ben provides a great answer. Just add a bit more
     
    lot size might or might not affect current standard cost. 
     
    situation one: run time 100 mins, lot size 10, if user change it to 10, 1, the standard cost won't be affected.
    but if the performance of the work center improves and 
    situation two: run time 100, lot size 100, then user might need to roll up the costing to make it accurate. Otherwise, the variance will get greater. 
     
    Jun Wang
  • Suggested answer
    Ben Baxter Profile Picture
    Ben Baxter 4,053 Super User on at
    Manufacturing- questions
    Lot Size on the Item Card is used in the Standard Cost Calculation to spread the Setup Cost over the typical Production Quantity (aka Lot Size).
     
    The Lot Size on the Routing Line tells the system how many units are produced per Run Time.  For example, a four cavity mold has a Lot Size of 4 as you get 4 units per cycle.  This has an impact on the Capacity Need and End Date of the Operation. (Capacity Need = Run Time * Quantity / Lot Size)
     
    You do not HAVE to change your Standard Cost.  If your Std. Cost is calculated based on a Lot Size of 10, but you start producing in Quantities of 100, your Std. Cost is going to be higher than your actual production cost.  This leads to a Variance.  It is up to your business how often you roll your standard costs.
     
    P.S. I hope this information was helpful, and if so please mark it as a Verified Answer to help other forum users.
     
    Best Regards,
    Ben Baxter
    Accent Software Inc

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