Catch weight
Catch weight products allow for the tracking of inventory in two units of measure: an inventory unit and a catch weight unit. Catch weight products are commonly used in process manufacturing where the products are handled in containers and each container can vary slightly by weight; therefore, two inventory units are required.
The product is typically priced by the weight or volume of the product in the container and not as a standard price for each container. For example, chicken breasts are priced by weight, and not by each package of chicken breasts, because each package can vary slightly in total weight.
Each catch weight item is set up so that the catch weight unit of measure has a specified range of inventory units of measure for the item, for example a 10-pound bag of shrimp is always between 9.8 pounds and 10.2 pounds.
The inventory unit is the unit of measurement in which the product is weighed and invoiced, for instance kilogram (kg), while the catch weight unit of measure is the unit of measure in which the inventory transactions are performed (such as transfers, picking, and shipping) for the units of box, bag, or pallet (for example).
This weight can be registered on the production floor using the production floor execution interface to instantly register material consumption for watch weight items, and to report on formula items, co-products, and by-products that are enabled for catch weight.
The following example uses the food industry to explain catch weight:
Poultry - Poultry is counted in inventory as number of packages, but when shipped, it is sold and priced by weight.
Shrimp - Shrimp is counted in inventory by number of bags, but when shipped, it is sold and priced by weight.
Coffee - Coffee beans, which are delivered in bags, are counted in inventory with a weight recorded for a group of bags. Though coffee is sold and priced for each bag, the weight needs to be recorded as well.
The two methods that you can use to track catch weight items are: partial visibility and full visibility.
Partial visibility
Partial visibility catch weight is useful in industries where containers are packaged by machine to a specified weight tolerance, such as coffee beans. The total weight of the boxes that are manufactured is important, but each bag is within such a tight tolerance that each bag does not need to be tracked.
For a catch weight item with partial visibility, one or more units of inventory use the same serial number or batch number. Only the aggregate of the values in the inventory unit is recorded. The values for individual units that share the same batch or serial number do not have to be recorded. As a result, the value in the inventory unit must be entered for each transaction that includes the inventory unit.
Because each container weight is not tracked, anytime an inventory transaction is completed, such as a transfer or shipment, the number of containers, along with the aggregate weight of the containers, must be entered into Dynamics for weight tracking.
When partial visibility is used, if the full catch weight quantity or dimension is not reserved, a quantity of the minimum catch weight inventory quantity will be reserved for that dimension. The difference between the reserved physical and the nominal on order quantity will be left on order until the actual picking occurs.
Consider a scenario of partial visibility where three bags of coffee are received into stock, each piece belonging to the same batch number. During product receipt, the number of bags and the total weight of the three bags are recorded in one transaction. Only the total weight for the three bags is recorded, not the individual weight of each bag.
Full visibility
Full visibility is useful in industries where the specific weight of a container needs to be known at all times and the weight of the container is not expected to change after it has been created, for example, bags of shrimp. The bag is produced and packaged, and each bag is weighed and assigned a serial number. This bag is then stored until shipment, at which point, the exact weight of each bag is invoiced to the customer.
A catch weight item with full visibility requires that each unit of inventory is assigned a unique serial number and that the specific weight of the inventory unit is recorded. A unique serial number is associated with the weight of the inventory unit.
Full visibility catch weight works best in the following conditions:
When individual physical units (handling units) need to be tracked by their weight
Finished products that leave the factory or warehouse and do not have to be weighed again, such as a 10-kg box of frozen chicken drumsticks
When a variation occurs in weight between the individual handling units that have an impact on the cost and the sales price of those handling units.
When the weight is entered once at the process stage and it is not expected to change
Catch weight items can be used to:
Create sales and purchase agreements in catch weight units. This method is useful for items where the pricing is for each box instead of by weight, such as boxes of oranges.
Create customer orders in a number of boxes/packages, where they will pay by weight.
Create a purchase order in catch weight units, which you would use when ordering items that are priced for each container.
View net requirements in catch weight units.
Create shipment staging in catch weight units.
Create picking lists in catch weight units.
View on-hand inventory in catch weight units.
Create formula lines in catch weight units, when the entire container is used for a formula line.
Scenario
In fish processing, the fresh caught fish are purchased directly from the fisherman based on the bulk quantity of the fish that was caught in that trip. This quantity is then processed and packaged into individual containers, where each container is between 20.0 pounds to 22.0 pounds. Each container is weighed, and the weight is recorded for that specific container serial number. These containers are then shipped to customers when they place an order for fish.
In Supply Chain Management, this process will be modeled by using a full visibility catch weight item for the packaged fish. The formula for the packaged fish will contain the bulk fish ingredient, ice, and the packaging materials. After completing the report-as-finished action of each box of fish, the user measures the weight for each box and then generates the serial number for the package.
When a sales order was entered, the quantity on the sales order would be in number of containers and the standard pounds for each container. The reservation process would reserve containers of fish and calculate a total weight reserved.