Page 492 - Orlicky's Material Requirements Planning

CHAPTER 27 Highly Visible and Collaborative Execution 469

FIGURE 27-18

All order activity for Part PPZ with projected on-hand position.
Part #: PPZ PBS: SOWD in 6 Days Today’s Date: 5/20
Order # Quantity Projected Request Promise Status
MO 531-99 –10 45 5/22 5/22 Unreleased
MO 532-10 –10 35 5/23 5/23 Unreleased
MO 532-32 –40 –5 5/24 5/24 Unreleased
PO 625-71 30 25 5/25 5/25 In process at supplier
PO 626-05 25 50 5/29 5/29 In process at supplier

Figure 27-19 is a graphic depiction of what the projected on-hand balance looks like
over the course of Part PPZ’s ASRLT. The projected stock-out is the dip that occurs on
5/24. Negative on-hand position is not displayed in the graph. ADU is not being factored
into the projected on-hand balance because actual demand is greater than ADU over
ASRLT. To factor in both actual demand and ADU will cause “double dip” demand and
unnecessarily trip the alert. Our next example with Part PPL uses the ADU to trigger a
projected buffer status alert.
Part PPL has a projected buffer status alert. Its calculated ADU over ASRLT is greater
than actual demand over ASLRT (200 > 150). In this case, ADU will be applied to the pro-
jected on-hand position. Figure 27-20 is the drill down on supply orders for Part PPL.
In this case, there is not a projected stock-out, but there is a projected eroded buffer
position that is severely in the red zone. By using ADU, the on-hand position deteriorates
to 13 percent of total red zone before the next incoming receipt. Figure 27-21 is a graphic

FIGURE 27-19

Projected on-hand balance for Part PPZ.
Projected Buffer Status (Actual Demand)
60
50
On-Hand Balance 40 TOR = 40

30

20
10 On-Hand Alert = 20
PPZ
0
5/20 5/21 5/22 5/23 5/24 5/25 5/26 5/27 5/28 5/29 5/30

Days Forward