MB-335 · Question #206
A Discrete manufacturing company produces speakers. The high-end speaker model uses protective rubber strips on the edges. Approximately five inches of rubber is consistently scrapped in the productio
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Question
A Discrete manufacturing company produces speakers. The high-end speaker model uses protective rubber strips on the edges. Approximately five inches of rubber is consistently scrapped in the production process, regardless of production quantity. Workers manually consume the extra material on the picking list or scrap it in an inventory journal. You need configure the system to automatically account for this scrap on the Bill of materials (BOM). What should you do?
Options
- ASet a Constant scrap of five on the BOM line for rubber.
- BAdd an additional BOM line for five inches and set consumption to Variable.
- CSet a Variable scrap of five percent for the rubber BOM line.
- DIncrease the required quantity of the rubber component by five on the BOM.
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