Page 485 - Orlicky's Material Requirements Planning
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462                                                 PART 4      Looking Backward and Forward


           FIGURE 27-6
                                                Planning                      Buffer
                                               Buffer and                    Status
           Buffer status alert
           zones.                             Zone Levels                     Alerts


                                                  G                            G






                                                  Y                            R





                                                                               Y
                               On-Hand Alert
                                 Level (50%)      R
                                                                               R



        zones used for planning and the ways in which the buffer status alerts translate those lev-
        els and zones for execution purposes.
             As shown in the figure, the top half of the red zone from a planning perspective is
        actually a yellow zone position from an on-hand perspective. Figure 27-7 is another
        graphic depiction. If the desired distribution of on-hand inventory is in the lower half of


           FIGURE 27-7
           Buffer status alert zones—another view.





          Number of Parts/SKU                    Desired On-Hand Inventory
                                                 Alignment






                    DR           R        Y         G           B          Planning Perspective


                   DR          R   Y      G                  B             On-Hand Perspective
   480   481   482   483   484   485   486   487   488   489   490