Page 493 - Orlicky's Material Requirements Planning

470 PART 4 Looking Backward and Forward

FIGURE 27-20

Open supply activity for Part PPL with projected on-hand position.
Part #: PPL PBS: 13% in 8 Days Today’s Date: 5/20
Order # Quantity Projected Request Promise Status
PO 624-72 100 110 5/24 5/29 In process at supplier
PO 625-11 100 170 5/29 6/29 In process at supplier
PO 625-98 150 250 6/09 6/09 In process at supplier

depiction of this erosion, with the deepest projected point occurring on 5/28 (eight days
from the current date). At this point, the buyer will need to make a decision whether to
expedite or not. In any case, it would be good to call the supplier for a status update.
Part PPC is the final part on the projected buffer status alert. Its calculated ADU over
ASRLT is greater than actual demand over ASLRT (50 > 27). In this case, ADU will be
applied to the projected on-hand position. Figure 27-22 is the drill down on supply orders
for Part PPC.
As with Part PPL, there is no predicted stock-out. However, unlike Part PPL, there
appears to be no serious buffer erosion either. In most cases, parts are not brought into
projected buffer status alert unless they erode through the OH alert level. This example
was provided in order to further illustrate the idea that when the on-hand position is red
from a planning perspective, it may not be red from an on-hand perspective.
In Figure 27-23, past-due supply orders are disregarded in determining the future
on-hand position based on either ADU or actual demand. This highlights the need to
adjust the promise date of the supply order to make a valid projection.

FIGURE 27-21
Projected on-hand balance for Part PPL.

Projected Buffer Status
200
Projected On-Hand Balance 150 TOR = 150

100
On-Hand
Alert = 75
50

0 PPL
5/20 5/21 5/22 5/23 5/24 5/25 5/26 5/27 5/28 5/29 5/30 5/31 6/1 6/2 6/3 6/4 6/5

Days Forward