Yield Percent
MRP can use the item yield percentage to plan additional supply. Using this method, the expected yield for an operation can be expressed as:
Yield = Acceptable Units at Operation End * 100
The total manufacturing yield for a product is determined by multiplying the yield percentages for each of its operations.
Manufacturing Yield = Yield % for Op10 * Yield % for Op20 *...
Take care when setting yield to anything but 100 percent—particularly when yield is used for multiple operations.
Example: For four operations, each having a yield of 90 percent, the system calculates the item yield according to the following calculation:
90% * 90% * 90% * 90%=66%
This equation includes an expected loss of one in three units. If MRP plans this item for a demand of 100 units, the system creates a scrap requirement for 51 units and a planned order for 151 units, based on the following formula:
(100 / 66%)
With standard yield percentage, all component quantities use the same 66 percent item yield when MRP derives component requirements. For example, if this item has a requirement for one each of four components, each with a product structure quantity per of 1, MRP determines that 151 units are required for each component item, based on this calculation:
(100 * 1) / 66%