By-Products

Sometimes a manufacturing process produces more than one end item.  The most valuable of these products is the primary product.  The other items produced during the process are by-products.  For example, the manufacturing process for plastic containers might produce plastic chips, which are sold as packaging material.  Since by-products are produced as a consequence of the production of another item, they do not have their own product structures or routings.  They are included in the product structure of the primary product and given a usage code of P, for produced.  Any part type can be included as a produced item on the product structure.

Market demand for by-products can be entered in Master Scheduling.  Master Scheduling and Requirements Planning create a schedule to meet demand for the main product, calculate the amount of the by-product that will be produced, and compare the available amount to any market demand for the by-product.  If demand exceeds supply, the planning applications will create additional requisitions for the by-product.