What Is Mixing Ratios And Why Are They Required To Be Maintained Befo

1.	What Is Mixing Ratios And Why Are They Required To Be Maintained Before Creation Of Cost Estimate?
Answer» Mixing ratios are weighting factors assigned to the procurement alternatives. This weighting factor is OBTAINED from the planning DEPARTMENT based on the usage of the procurement alternatives during the planning year. For e.g. Procurement alternative 1 (production version 1) 40% will be manufactured Procurement alternative 2 (production version 2) 35% will be manufactured Procurement alternative 3 (production version 3) 25% will be manufactured This % will be maintained as mixing ratios. Thus when system calculates the mixed cost estimate, system will first cost each of the production version and then multiply each of the costs with the weighting factors. Thus 240 (cost of prod. Vers 1) X 40 = 9600 210 (cost of prod. Vers 2) X 35 = 7350 160 (cost of prod vers 3) X 25 = 4000 Mixed costs 17350/100 = 173.5 Mixing ratios are weighting factors assigned to the procurement alternatives. This weighting factor is obtained from the planning department based on the usage of the procurement alternatives during the planning year. For e.g. Procurement alternative 1 (production version 1) 40% will be manufactured Procurement alternative 2 (production version 2) 35% will be manufactured Procurement alternative 3 (production version 3) 25% will be manufactured This % will be maintained as mixing ratios. Thus when system calculates the mixed cost estimate, system will first cost each of the production version and then multiply each of the costs with the weighting factors. Thus 240 (cost of prod. Vers 1) X 40 = 9600 210 (cost of prod. Vers 2) X 35 = 7350 160 (cost of prod vers 3) X 25 = 4000 Mixed costs 17350/100 = 173.5

What Is Mixing Ratios And Why Are They Required To Be Maintained Before Creation Of Cost Estimate?

Answer»

Mixing ratios are weighting factors assigned to the procurement alternatives. This weighting factor is OBTAINED from the planning DEPARTMENT based on the usage of the procurement alternatives during the planning year.

For e.g.

Procurement alternative 1 (production version 1) 40% will be manufactured

Procurement alternative 2 (production version 2) 35% will be manufactured

Procurement alternative 3 (production version 3) 25% will be manufactured

This % will be maintained as mixing ratios.

Thus when system calculates the mixed cost estimate, system will first cost each of the production version and then multiply each of the costs with the weighting factors.

Thus

240 (cost of prod. Vers 1) X 40 = 9600

210 (cost of prod. Vers 2) X 35 = 7350

160 (cost of prod vers 3) X 25 = 4000

Mixed costs 17350/100 = 173.5

Mixing ratios are weighting factors assigned to the procurement alternatives. This weighting factor is obtained from the planning department based on the usage of the procurement alternatives during the planning year.