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IBD short description: Materials

Material expenditures mean in IBD not only the inputs purchased for one-time use (say, components, row materials, external service or power), but also the inputs purchased once and used many times or during long time, for example - equipment, facility, software. 

IBD presents very flexible models to describe your material inputs. You can define material norms per product unit depending on time to the product output; a fixed amount of a material (equipment, facility) necessary for a product output independently on the output value or depending only on the calendar time unit. 

IBD allows to use outputted products or service also as inputs for other output products. And what is more, different output products can be used as inputs for each other and also for sale. In this case to calculate the total output of each of them IBD solves the system of equations involving all those products and all time units.   

Here you can see some forms called from Materials menu and allowing to describe all these features. In these forms the white fields are intended for data input, the blue ones are calculated or selected by IBD. 

Materials ...applied for production - allows to input the applied materials and their data. If the field Integer value is 'Yes', then you can purchase only integer number of its measure units. Among the materials you can input also facilities and equipment.

Select materials ... - allows to define materials for each output product from the list of all materials and your products (which also may be selected as materials, if necessary). 

Material input norms - describes dependence between materials input and the product output. You can define material quantity per product unit and the month when it should be inputted relatively to the product output time. For example if you defined the relative Number of months as (-1), then the material should be used a month before the product output. Say, for the product output in August the material should be inputted in July. The same material can be used also directly in the month of production (the relative Number of months = 0) or even after the output (the Number of months > 0), for example, the materials for the product guaranteed support. 

You can also define the required material quantity not per product unit but for all output independently on its value. For example, you need to expend the power for the workroom light and air condition each month independently on the production value.

Material demand and cost - calculates the total quantity and cost of each applied material for each product and time unit. You can input fixed material needs not depending on the output of the selected product, but depending on the calendar time unit. This feature can be used, for example, to describe material investments like manufacture equipment or facilities that are purchased once and service future production with any output value allowed by these production means.

If you use some your output products also as materials for other products, IBD calculates full output of each such product required for sale and for the input as material in the corresponding months. For this purpose it solves the system of equations describing balances between the output, sales and the input of such product in each time unit.

Total cost of materials - calculates the total quantity and cost of each purchased material in each time unit and also the total cost of all purchased materials and the payments to suppliers. 

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