Page 416 - Orlicky's Material Requirements Planning

CHAPTER 23 Strategic Inventory Positioning 395

FIGURE 23-5
Longest Lead Time Path = 8 Days
Realistic lead
time for Part 101. 2 101

5 201 203 6 204

301 302 303P 304P

401P 402 403P 404P

501P

FIGURE 23-6
2 101
BOM with ASR
lead time
stratifications.
5 201 7 203 204 6

4 301 4 302 303P 304P

3
3 401P 402 403P 404P

4 3
501P

ASRLT of 14 days. Part 301 has an ASRLT of 8 days. There are three independent ASRLT
groups within the Part 101 BOM.
ASRLT is a qualified CLT. By using the ASRLT approach, planners now can calcu-
late and/or determine more realistic dates for the replenishment or delivery of a part. Of
course, using this approach requires each discrete part number to have an MLT or pro-
duction lead time (PLT), and those lead times should be as accurate as possible. ASRLT
is a pivotal building block for where to position inventory, the size of those inventory
positions, and critical date-driven alerts and priorities.