Example: Scrap Factor

If you need to end up with a quantity of 100 which has a scrap factor of 20%, the resulting quantity required is 125 (100/ 1 - .2). If you then scrap 20% of the 125 issued, you end up with 100 good pieces (125 - (125 * .2)).

People often expect the system to simply multiply the scrap factor by the quantity needed and add the result to the quantity needed. That is, in the above example they expect the total required to be 120 (100 + (100 *.2). However, if you issued 120 pieces and scrapped 20%, you would end up with only 96 good pieces (120 - (120 * .2).