Page 193 - Orlicky's Material Requirements Planning

172 PART 2 Concepts

Internal transactions affecting multiple records:
10. Change quantity of planned-order release (parent record) and change quantity
of gross requirements (component records).
■ Secondary effect: Recompute projected on-hand and planned-order releases in
component records.
Any given inventory transaction has one (and only one) of the 10 possible effects
listed. The comments that follow refer to these effects by their number.
Effect number 1 (change quantity of gross requirements) is a result of either increas-
ing or reducing the contents of a gross requirements bucket or multiple buckets. Note
that a change in the timing of a gross requirement is effected by reducing the quantity in
the original bucket and increasing the quantity in the new bucket. Addition of a new
requirement in a new bucket is tantamount to increasing that bucket’s contents from the
original zero to the new quantity. Effect number 1 results from transactions reporting
demand for the item (including an increase, reduction, or cancellation of this demand)
originating from external sources. Orders or forecasts for service parts, interplant items,
and so on are examples.
Effect number 2 (change quantity of scheduled receipt) results from increasing,
reducing, canceling, or rescheduling an open order. Rescheduling, as in the case of gross
requirements, means reducing the contents of one bucket and increasing the contents of
another one. Transactions that will have this effect are, for example, a purchase-order
increase, a scrap report, and a change in the order due date.
Effect number 3 (reduce scheduled receipt and increase quantity on hand) is caused
by a stock receipt, partial or full, of an order. Note that this does not apply to an
unplanned receipt for which no order had been placed previously nor to the quantity of
an overrun or overdelivery. Unless delivery is premature, neither the projected on hand
nor the planned-order release schedules need be recomputed.
Effect number 4 (change quantity on hand) is the result of transactions that increase
or reduce the quantity on hand without affecting any open orders. Stock returns, overde-
liveries, inventory adjustments up or down, and unplanned disbursements belong in this
category. The unanticipated change in the quantity on hand causes a recomputation of
the projected on-hand schedule and, consequently, the planned-order release schedule.
Effect number 5 (reduce quantity on hand and reduce gross requirements) results
from a disbursement or shipment of an external (i.e., service part, intersystem plant, etc.)
order. There are no secondary effects on the other status data in the record.
Effect number 6 (reduce quantity on hand and reduce quantity allocated) results
from a planned (anticipated) disbursement of a component item against a parent order.
As the material requisition or picking list, previously released to the stockroom, is filled,
the transaction reporting it reduces the quantities on hand and allocated.
Effect number 7 (change quantity of planned-order release in the parent record and
change quantity of gross requirements in the component record) is a result of an inter-
vention by the inventory planner, who, as discussed in Chapter 8, solves certain problems
by changing the quantity or timing of a planned order and “freezing” this change so that