Follow-up question on BOM production and consumption of same item

Question

Awhile back, I asked the question about whether it made sense to have a BOM structured to simultaneously produce and consume an item.  BOM that needs to produce and consume same component
Thanks for the help and it does what I thought it should.  We have a local difference of opinion on the consumption of primary components, though.  To attempt to ensure that we account for the bleed-off of materials into a vacuum system, we set up a BOM like this
Material A    498.379
Material B    332.253
Material C     14.914
Material D     22.371
Material E     64.317
Material F    103.570
Material F     -35.804  (This is the quantity vacuumed away, treated as by-product.)
to cover a recipe card structured like this
Material A    481.150
Material B    320.775
Material C     14.400
Material D     21.600
Material E     62.100
Material F     100.00
The difference of opinion is whether to recognize the reclaimed material (Material F) at all on the BOM, with a minority saying that we will not consume (and therefore not order) enough of materials A through E.  They say that "you have to put the same amount of good ingredients in as you produce because it's a closed loop system".
So the other approach would be a BOM like this
Material A    534.252
Material B    357.852
Material C     15.840
Material D     23.760
Material E     68.310
The  material reclaimed (Material F) is sourced not only from this particular vacuum system, but from other vacuum systems outside the blending operation.
It seems to me that the first approach is correct, because we recognize consumption and production of the reclaimed item, and proportionately increase the component items to recognize that more are needed than will go out as good product.  Even the reclaim becomes reclaim.  The amounts vacuumed off seem to be consistent at 3.57%.
Which approach is correct?

Answer 1

Thank you for the reply.  The reclaimed material can be as much as 11% of the total material made.  Last year, over one million kilograms were worked back into the product as reclaim, and the metals are somewhat expensive (not like precious metals, but they are not trivial, either).
Accuracy versus precision is always something to consider, but I think it's important enough to follow, especially because it is sourced from several processes.  The sourcing from the other sources means that the reclaimed material from those sources has already been reported as production of the primary product which consumes the virgin materials, so I think it should be re-introduced into the flow as a separate item (Material F)
The primary argument I want to settle is the business about how we won't order enough component materials if we use the BOM that shows simultaneous production and consumption.  I think under the approach in which we ignore the reclaim, we will consume more components from the backflush location than we physically use and would then order too much material because of using a BOM that pulls only virgin materials.