Page 467 - Orlicky's Material Requirements Planning

CHAPTER 26 Demand-Driven Planning 445

clear signals from both planning and execution perspectives. The actual on-hand inven-
tory position relative to the buffer zones will provide execution priority, as discussed in
Chapter 27.
Figure 26-13 is what a planning screen would look like in relation to Figure 26-12.
The sequence from top to bottom is determined by the priority of the planning action.
The planning action priority is determined by a general reference (color) and a discrete
reference (percentage of buffer penetration). In this case, Part h654 is the highest priority
from a planning perspective because it is in its rebuild zone and has the deepest available
stock penetration against its buffer.
This relative priority distinction is a crucial differentiator between the traditional list
of planner alerts and action messages associated with traditional MRP and the highly
focused and visible approach of DDMRP. Under this type of approach, planners can
quickly judge the relative priority across orders without massive amounts of additional
analysis and data queries.
In Figure 26-13, two orders require planning action—one requires execution action
and one requires no action (planning or execution). In the case of both Parts h654 and
f576, there is a recommended planning action to launch a supply order in such a quanti-
ty to bring the available stock position to the top of green. There is no planning action for
Parts r457 and r672 because their calculated available stock positions place them in the
green. There will need to be some additional investigation on Part r672 in order to deter-
mine whether an expedite of open supply is warranted given the status of its on-hand
position. This is an execution-related matter and will be covered in Chapter 27.
Sometimes a recommended quantity might exceed the top of green level if the part
has an order multiple. Figure 26-14 is an example of an order multiple pushing the avail-
able stock position over top of green. Part 408 follows the buffer profile M21. The buffer
levels and available stock position are provided. Note that this part has a minimum order
quantity, an order multiple, but no order maximum. This means that at least 20 units
always must be ordered, and any amount above 20 must be ordered in increments of 20.
The minimum order quantity is not significant because it represents only 20 percent of
the calculated green zone.

FIGURE 26-13
Planning screen example.

Part Available Open On-hand Demand Recommended Action Planner Code
Stock Supply Supply Qty
h654 4038 530 3721 213 2162 Place New Order GSC
(66%) (60%)
f576 6872 3358 4054 540 3128 Place New Order GSC
(69%) (41%)
r457 8265 5453 4012 1200 0 No Action GSC
(83%) (39%)
r672 3852 2743 1332 223 0 Expedite Open GSC
(90%) (30%) Supply (Execution)