If operations on a routing are of the LOT type and standard costing is being used, the W/O cost roll up register assumes a work order quantity of 1. This causes labor costs to be greatly overstated and thus makes the cost roll up register unusable. Previous systems I have used would look to a "Standard Build Quantity" and divide all lot charges by this quantity before applying costs to a roll up. The Economic Order Quantity field could serve this purpose.

by: Daniel W. | over a year ago | Manufacturing