Weekly demand
If your ERP calculates the gross demand by weekly time bucket, you have for example:
Week 1 | Week 2 | Week 3 | |
Weekly demand | 500 | 1000 | 400 |
Working day | 5 | 5 | 5 |
Split the weekly demand by day in order to visualize the counting and delivery days (we suppose that we are not working on Saturday and Sunday):
Mo | Tu | We | Th | Fr | Sa | Su | Mo | Tu | We | Th | Fr | Sa | Su | Mo | |
Demand | 100 | 100 | 100 | 100 | 100 | 0 | 0 | 200 | 200 | 200 | 200 | 200 | 0 | 0 | 80 |
Count | Yes | - | - | - | - | - | - | | | |||||||
Delivery | Yes | ||||||||||||||
Count | Yes | - | - | - | - | - | - | | | |||||||
Delivery | Yes | ||||||||||||||
Count | Yes | - | - | - | - | - | - | | | |||||||
Delivery | Yes |
We have also the following constraints:
- Delivery Safety Time = 1 day
- Minimum Order Quantity = 40
- Packaging quantity = 20
- Batch size = 300
To calculate the loop for the order sent the first Monday, we have to cumulate the demand from the first Monday to the second Wednesday and add the following day for the DST:
100+100+100+100+100+0+0+200+200+200+200 = 1300
To calculate the loop for the order sent the first Thursday, we have to cumulate the demand from the first Thursday to the second Sunday and add the following day for the DST:
100+100+0+0+200+200+200+200+200+0+0+80 = 1280
Now we have to take for each order the maximum between this value and the maximum of the MOQ, the packaging quantity and the batch size:
Monday order Loop = Max(1300;40;20;300) = 1300
Thursday order Loop = Max(1280;40;20;300) = 1280
Consumption profile
In the previous example, by smoothing the weekly demand on the working days of the week means that you are going to consume each day of the week the same amount of material. If it is not the case, you can define a consumption profile for the material in order to improve how the demand is spread on the working days.
We take the same data than the previous example and a consumption profile showing production running on Saturday for half of a working day:
Mo | Tu | We | Th | Fr | Sa | Su | |
Consumption Profile | 100% | 100% | 100% | 100% | 100% | 50% | 0% |
Split for a weekly demand of 1000 | 182 | 182 | 182 | 182 | 182 | 90 | 0 |
In this case, the daily demand changes:
Mo | Tu | We | Th | Fr | Sa | Su | Mo | Tu | We | Th | Fr | Sa | Su | Mo | |
Demand | 91 | 91 | 91 | 91 | 91 | 45 | 0 | 182 | 182 | 182 | 182 | 182 | 90 | 0 | 73 |
Count | Yes | - | - | - | - | - | - | | | |||||||
Delivery | Yes | ||||||||||||||
Count | Yes | - | - | - | - | - | - | | | |||||||
Delivery | Yes | ||||||||||||||
Count | Yes | - | - | - | - | - | - | | | |||||||
Delivery | Yes |
The loop calculation is giving (we include the DST):
Monday order Loop = Max(1228;40;20;300) = 1228
Thursday order Loop = Max(1305;40;20;300) = 1305
Like for the weekly loop you need to have a tool to splitt the weekly demand according to a consumption profile in order to calculate the loop. The consumption profile can be specific to each reference or group of references.
Please rank this page by clicking on the stars.