type
concept
created
Tue Apr 07 2026 02:00:00 GMT+0200 (Central European Summer Time)
updated
Tue Apr 07 2026 02:00:00 GMT+0200 (Central European Summer Time)
sources
raw/articles/PRD
tags
quality grades pricing surplus paper-trading

Quality Grades

abstract
Surplus paper is classified into three quality grades -- A (prime, 5-15% discount), B (near-prime, 20-35% discount), and C (off-grade, 40-60% discount) -- which determine pricing, matching scores, and container compatibility.

Overview

Quality grading is central to surplus paper trading. Because surplus comes from side trims, overruns, cancelled orders, off-spec production, trial runs, and other non-standard sources, the quality varies significantly. The marketplace uses a three-tier grading system (A/B/C) that standardizes quality assessment across mills and enables automated matching.

Grade Definitions

Grade Name Discount from List Price Typical Condition
A Prime / First Quality 5-15% Minor cosmetic issues only, fully functional. Meets all technical specifications. Typical sources: overruns, cancelled orders where production specs were met.
B Near-Prime / Second Quality 20-35% Some specs slightly out of tolerance, usable for most applications. May have minor deviations in GSM, brightness, or moisture. Most common grade for surplus.
C Off-Grade / Third Quality 40-60% Significant spec deviation, limited applications. Possible 20-30% waste in converting. Sources: off-spec production, damaged rolls, trial runs with poor results.

Surplus Sources and Typical Grades

Surplus Source Typical Grade Description
side_trim A or B Narrow strips cut from master rolls to achieve customer width. Usually good quality.
overrun A Production exceeds order quantity. Same specs as the order.
cancelled_order A Order cancelled but paper already produced to spec.
off_spec B or C Production did not meet target specifications.
non_standard_width A or B Unusual width that does not match standard orders.
trial_run B or C Test production for new products or settings.
damaged C Handling or storage damage (water, impact, wrapper tear).
obsolete B or C Paper produced to old specifications no longer in demand.

Grade in the Matching Algorithm

Quality grade is one of the five scoring dimensions in the wiki/concepts/matching-algorithm, weighted at 15%. The scoring logic:

Condition Score
Surplus grade is in buyer's acceptable list 100
Surplus grade is higher than buyer's highest acceptable 90 (buyer gets better quality)
Surplus grade is one level below buyer's lowest acceptable 40 (buyer might accept at a discount)
Surplus grade is two or more levels below 0

The grade hierarchy is: A (rank 3) > B (rank 2) > C (rank 1).

Examples:

Grade in Container Assembly

The container assembly algorithm enforces grade proximity: items in the same container must not differ by more than one grade level. A-grade and C-grade cannot share a container (A+C rejected). A+B and B+C are both acceptable combinations. This prevents quality perception issues when a buyer receives a mixed container.

Grade in Buyer Specifications

Each BuyerSpec includes an acceptable_grades field (array of 'A', 'B', 'C'). During the data bootstrap phase, default grade acceptance is set to ['A', 'B'] unless the buyer has historically purchased C-grade paper from Morichal's records.

Grade Validation in Ingestion

During Excel ingestion, the parser maps mill-specific quality terminology to the A/B/C system:

Mill Terminology Mapped Grade
"A", "Prime", "First Quality", "1st" A
"B", "Near-Prime", "Second Quality", "2nd" B
"C", "Off-Grade", "Third Quality", "3rd" C

If the grade field is missing or unrecognized, it defaults to B with a warning flag for admin review.

Quality Verification

In MVP, quality grades are self-reported by mills. The PRD identifies this as an open question (OQ-12): future phases may add admin spot-checks or third-party verification. The trust_score system (star ratings from buyers post-transaction) provides a feedback mechanism for grade accuracy over time.

Sources

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