Defining Potency

Potency is commonly used in industries that track the strength or the quantity of ingredients¾for example, chemical manufacturers.  Potency refers to the quantity of an active ingredient in an item as a percentage of the total quantity of an item.  MAC-PAC allows you to plan or list the beginning balance of a part in either potent or stockkeeping units (otherwise known as standard units).  Buying or selling the part, however, occurs in stockkeeping units.

Even if your company does not measure potency, you can use the potency feature to prevent specific lots from being planned during MRP.  (Read this key concept to learn more about this feature.)

To illustrate potency, we will use an example in which we manufacture a hydrogen peroxide solution.  This part is both potency controlled and lot-controlled.