Manufacturing · Odoo glossary

Scrap Rate

Scrap rate measures the share of material or output discarded as unusable, using a stated denominator and period.

Definition

In general ERP practice

Scrap rate measures the share of material or output discarded as unusable, using a stated denominator and period. Component losses and rejected finished units are different populations.

In Odoo

Odoo records scrapped components or products through scrap orders and a virtual scrap location. These records support loss analysis, but a percentage requires a consistent denominator such as consumed material or total produced units; scrap quantity alone is not the rate.

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