What is 'complexity factor' in SAP IS-AFS-MM - Materials Management?

complexity factor - Overview

• Component: IS-AFS-MM

• Component Name: Materials Management

• Description: Criterion for the vendor ranking in the source allocation. The complexity factor is stored in the purchasing info record and valuates the quality of the production of a material that is produced by a certain vendor. With the complexity factor you evaluate to what extent a vendor meets the requirements for the production of a material, when using complex and complicated production phases.

complexity factor - Details

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  Key Concepts: 
  The complexity factor in SAP Materials Management (MM) is a numerical value that is used to determine the complexity of a particular material. It is used to calculate the cost of a material and is based on the number of components, the number of operations, and the number of materials used in the production process. 
  
  How to use it: 
  The complexity factor is used to calculate the cost of a material. It is calculated by multiplying the number of components, operations, and materials used in the production process. The higher the complexity factor, the higher the cost of the material. 
  
  Tips & Tricks: 
  It is important to keep track of the complexity factor for each material as it can have a significant impact on the cost of production. Additionally, it is important to ensure that all components, operations, and materials are accurately accounted for when calculating the complexity factor. 
  
  Related Information: 
  The complexity factor can be used in conjunction with other factors such as labor costs and overhead costs to determine the total cost of a material. Additionally, it can be used to compare different materials and determine which one is more cost-effective.