Page 422 - Orlicky's Material Requirements Planning

CHAPTER 23 Strategic Inventory Positioning 401

FIGURE 23-13
Updated matrix BOM.

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
Child Items 304P 1 1 1
304
305
307P
309P 1 1
401P 1
402 1
403P 1 1 1
404P 1
408P 2
409 2
417P 1
501P 1 1 2
This is not to say that there is no merit in exploring compression possibilities for 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.
each individual parent item. There still can be tremendous value from a market and/or
inventory perspective in continuing to test the impact of stocking components that lie on
individual parent’s ASRLTs. Figure 23-15 represents a decision flowchart for using
ASRLT at either the individual part level or across all parts with a matrix BOM. This deci-
sion-making matrix can and should be iterated periodically (i.e., monthly, quarterly, and
semi-annually depending on the level of change in the environment). It is designed to use
ASRLT to compress lead times and/or inventory positions from a single parent BOM per-
spective or from a matrix BOM perspective. There is an illustrated linkage between the
two perspectives.

FIGURE 23-14
Shifted ASRLTs for each end item.

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