Hi all,
I was working with Co-products and By-products, I had a small issue in understanding the Co-products and By-products setting for formula products.
In a Self study case on Process manufacturing, there are 2 products namely doughnuts and bread rolls. For producing these items, Dough is required. Processing time of 500 Kg of dough takes 1 Hr. Given Formula for these formula items is for a formula QTY of 20 which requires 1,85 Kg of dough along with other ingredients to produce the formula products (doughnuts & read rolls)
Doughnuts by-product is that 5% of the dough is scrapped. The scrapped value needs to be included in the finished product cost and has no Co-products. Bread rolls Co-products is 10% of lower grade of dough that can be reused. It needs to be stocked. Bread rolls have no by-products.
How should the setting in the Formula for Bread rolls, for stocking 10% of the lower grade dough and reuse? How should the setting in the Formula for Doughnuts, where the 5% of the By-products is scrapped? How should i represent them in the formulas and how should i see the production results of these by-products and co-products?
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