The Disposal Modes for a product can be updated from the Higg Product Module and/or Company Defaults in the “Settings” section.
The Manufacturing Waste setting allows the user to specify the ratio of manufacturing production waste that is recycled or downcycled instead of landfilled or incinerated. Unless this information can be provided by the Finished Goods Manufacturing facility, the defaults should not be changed. When updating this setting for a specific product, data from the actual manufacturing facility should be used.
Excess Finished Goods Rate for this Product
This setting relates to the amount of finished goods that are produced versus the amount that are sold to consumers. This can be updated at a product level based on the specific excess finished goods rate for a previous iteration of the product and/or category level defaults. When calculating these values, the overall production and sales volume of products should be considered. For instance, if 1 million units are sold to consumers and 1.1 million units were purchased from finished goods manufacturers, the excess finished goods rate is: (1.1 million units produced – 1 million units sold = 100,000 excess units) / (1 million units sold) = 10%. The disposal pathway for these excess units can also be specified. The recycled / downcycled disposal mode applies to any recycling or downcycling of the excess products. Landfill / incineration applies to any landfilling or incineration of the excess goods.
Sample Rate for this Product
This setting relates to the amount of prototypes and samples that are produced versus the amount that are sold to consumers. When updating this for a specific product, the number of non-commercial samples (prototypes, fit samples, and salesman samples) and anticipated sales volume of products should be considered. For instance, if 1,000 samples are created and the total amount sold is 100,000 units, then the sample rate is: (1,000 non-commercial sample units) / (100,000 units sold) = 1%. The disposal pathway for these sample units can also be specified. The recycled / downcycled disposal mode applies to any non-commercial samples that are recycled or downcycled. Non-commercial samples that remain in use should also be added to this category. The Landfill / Incineration mode applies to any non-commercial samples that are landfilled or incinerated.