Wastage on production

anthony_12c

Hi,

Wondering if someone can help explain to me (in a non-complicated manner) the idea behind the workings for wastage of materials during production processes.

Specifically the use of say 4/96 for 4% wastage. I was attempting to calculate it by either multiplying by .96 or 1.04 and therefore was not finding correct answer.

siva

Hi Anthony,

To account for the wastage in your example you have to divide the units by 0.96 (1-4/100). For 5% divide by 0.95, for 8% divide by 0.92.

I hope this helps.