Page 420 - Orlicky's Material Requirements Planning

CHAPTER 23 Strategic Inventory Positioning 399

FIGURE 23-11
ASRLT chains terminating with 501P.

101 1H01 20H1 20Z1

201 203 205 207 204 304 301 303

301 305 307P 304P 302 304P 309P 401P 402 408P 409 403P 417P

408P 409 403P 404P 403P 501P 501P 501P

501P

If the ASRLT chains for the end items all terminated with 501P such as described in
Figure 23-11, it represents an obvious opportunity to compress all end-item lead times
and leverage a lower-cost item against multiple end-item positions.
Figure 23-12 is the matrix BOM with parts identified that lie on an ASRLT path.
Boxes that are shaded within the matrix represent those parts.
Below are the numbers associated with this compression and leverage. Average on- Downloaded by [ Singapore Polytechnic Library 176.79.113.174] at [06/05/21]. Copyright © McGraw-Hill Global Education Holdings, LLC. Not to be redistributed or modified in any way without permission.
hand in relation to strategic buffers will be discussed in Chapter 24.

FIGURE 23-12
Matrix BOM with ASRLT components highlighted.

Parent Items
101 1H01 2H01 2Z01 201 203 204 205 207 301 302 303 304 305 402 409
201 1
203 1
204 1
205 1
207 1
301 1 1
302 1
303 1 1
304
Child Items 304P 1 1 1 1
305
307P
309P
401P 1 1
402 1
403P 1 1 1
404P 1
408P 2
409 2
417P 1
501P 1 1 2