Page 489 - Orlicky's Material Requirements Planning

466 PART 4 Looking Backward and Forward

FIGURE 27-13

On-hand alert screen example (purchased parts).
On-Hand Alert
Part # OH Buffer Status Part Type On-Hand Qty Open Supply Demand Available Stock Status
PPA Stock Out w/Dem Purchased 0 925 25 900 (GREEN)
PPJ 47% (RED) Purchased 70 385 10 445 (GREEN)
PPS 67% (YELLOW) Purchased 50 263 13 300 (GREEN)

rial for the example but should be made available by drilling on the order activity of Part
PPA. Despite this, available stock is at 90 percent and in the green, meaning that there is
ample open supply. Part PPA is definitely a candidate for open-supply expedite. Figure
27-14 shows Part PPA’s available and on-hand stock situation.
Figure 27-15 is the information received when a buyer implodes PPA open supply.
Once again, today’s date is 5/20. The order due the soonest is now late with regard to
promise date. According to status, it is at the supplier’s shipping facility. In this case,
expedited freight might be considered to get PO 126-12 in as soon as possible.
Stocked out with demand (SOWD) is usually more devastating than simply being
stocked out. Being stocked out means that there is a risk of missing opportunity. SOWD
means that missing opportunity or at a minimum eroding customer confidence has
become a reality.

FIGURE 27-14
Part SAE available and on-hand stock positions.
1000
Available
900
Stock Position
800
Part: PPA
700
Top of Green 1,000
Top of Yellow 700 600
Top of Red 300 500
On-Hand Alert 150
400
Available Stock 900
300
On-Hand 0
200

100 On-Hand Alert

0 On-Hand Position
PPA