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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Production setup cost
Microsoft Dynamics AX (Archived)

Production setup cost

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Posted on by Dexin 446

Hi guys,

I have the below scenario on production order, wonder if anyone can provide me some guide

Am am running weight average cost (actual cost) for my inventories item. 

I am expecting my setup cost to be base on my run qty

My scenario Production order 1

BOM setup

FG cost = 600 (base on standard formula)

Material

RAW 1 = 100 (cost) 

RAW 2 = 100

Route:

Machine 1 (Machine cost)

Run time = 200 (2 hours for 100 qty)

Setup time = 200 (cost) (Expected the 200 cost is for run time of f 100 qty)

i am expecting the result below:

If i start my production order for 50 qty, system can auto calculate my setup cost as 100  [ base on formula (50/100)*200 ]

I am expected the cost to be lower

FG cost = 400

Material

RAW 1 = 100 (cost)

RAW 2 = 100

Route:

Machine 1 (Machine cost)

Run time = 100 ( base on formula 2 hours for 100 qty)

Setup time = 100 (expected lower cost) (Expected the 100 cost is for run time of  50 qty)

*This post is locked for comments

  • Suggested answer
    guk1964 Profile Picture
    guk1964 10,877 on at
    RE: Production setup cost

    You can set up quantity specific BOMS/routes each with different set up allowances.

    That is not variabel but you coudl maybe set up one for 'normal, run quanity and another for 'small order'

    Or set a minimu  set up time for all order sizes and then add a variable per price quanity/time for the extra  you to add per piece.

  • Dexin Profile Picture
    Dexin 446 on at
    RE: Production setup cost

    Actually i do have a standard order qty. currency my setup run time is base on my standard order qty.

    I am consideration adhoc scenario, where sometime will produce less than my standard qty

  • Suggested answer
    guk1964 Profile Picture
    guk1964 10,877 on at
    RE: Production setup cost

    Set up cost is usually a fixed amount based on an expected order size. If its per piece then that would normally be part of the  run time.

    I am not clear whether you do all the set up at the start or piece by piece?

    If you want the order cost  to vary by piece quantity then you need  set the time per piece not for a fixed quantity. You can do that by extending the route time per piece - for scheduling that may not give the result you want . An alternative is simple option is to add a service item called 'SETUP' to add the required cost to the production order

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