Imagine the following scene:

You are running Alchemist and you need to make a product that involves buying rolls of paper that are to be soaked in a chemical solution, cut into standard lengths of 1.2 metres and then packed 200 in a box.
The paper costs R2800.00 per ton and you have calculated that for every Kilo of paper you get 10 sheets (They weigh 100 grams each)
When you ran a physical trial, 96.5 sheets of paper soaked up 6.5 litres of chemical and the chemical had a specific gravity of 1.05.

How do you set this up so that ALCHEMIST will handle the costings, MRP, etc., huh?

Like this:

1] Make a formula for the juice that you want to soak the paper in. (Let’s call it X – Concrete Retard)

2] Make a Raw Material that is a premix and uses the formula X. (Y – Concrete Retard Premix)

3] Make another formula that consists of 100% of Raw material Y. (Here, if you like, you can allow for a 5% Waste to cater for spillage costs in the soaking process, but you do not need to adjust the batch, because at this stage it is a bit of a thumb-suck as to how much will actually be wasted.) (Z – Concrete Retard from Premix)

4] Now we know that the paper soaks up chemical at the rate of 6.5/96.5 litres per sheet. This is a rate of (6.5/96.5)1.05 Kilograms per sheet, or 70.725 grams per sheet, so we make a “Container” that has a “capacity” of 0.071 Kilograms and has a cost of zero. (Call it RP.071-Concrete retard container)

5] We take on the paper as a stock item (Let’s call it RETPAP) with a cost of R2800.00 per 1000 (use the “Cost is per” function in [Stock][Maintenance] ,<Purchases /Qty / Cost> Tag, <Qty / Costs field view> ). Stored in and purchased in Kilograms.

6] Now we build up the product (i.e. one sheet of soaked paper – let’s call it CONRETP).
    This goes like this:
SP  has a formula of Z
              a container of RP.071
              a BOM item of 0.1 of RETPAP

7] We now need a box to take the papers, so we make a box stock item, SPB

8] Now we make a product that is a  KIT consisting of a box of 200 CONTRETP’s (A CONTREP200)
     The new Product has BOM items like this:
              1 x SPB
              200 x CONRETP

That’s it …… you schedule production in the usual way, and Alchemist does the rest. (The new Alchemist now allows the scheduling of Kits directly!)