Materials loss rate of flexible packaging material and cost structure

Reference article: Materials loss rate of flexible packaging manufacturing

As I mentioned in my pre-article:”When each suppliers calculate the cost structure of each flexible packaging styles, they will always focus on the problem of materials loss rate, as it relate to the benefit they earned, if they control it within the reasonable ratio, they earn these benefits, but if the flexible packaging material loss rate beyond the reasonable ratio, that means they are going to lose these benefits they earned and must cover the materials loss of this part”. But in fact, things are not so simple.

1-Beyond the reasonable ratio

This kind of situation is extremely common, that the suppliers can not control the materials loss rate within the reasonable ratio and finally cause the quantity they production is slight lower or much lower than the ones of customer order.

2-Equal to the reasonable ratio

The occurrence rate of this situation is almost 0,two cases maybe aroused.

(1)the materials loss rate has been controlled within the reasonable ratio(but very closed to the critical point of reasonable ratio),the supplier store up these excess quantity as the sample, let the quantities of production is equal to the quantities theirs customer order

(2)the materials loss rate is slightly beyond the reasonable ratio, small part of flex packaging supplier adulterate some quality defective products in the batch goods and create a false impression of "the quantities of production is equal to the quantities theirs customer order".

3-Within the reasonable ratio

(1)that means the flexible packaging suppliers control theflexible packaging materialloss rate perfectly(under the prerequisite of product quality assurance),the quantities of production will beyond the ones of the customer order,10% of quantities excess is belong to the reasonable scope.

(2)another situation is the flexible packaging supplier can not control theflexible packaging materialloss rate and reduce the sampling inspection frequency, in order to increase the rate of final products(but some bad quality product maybe confound inside them).

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