MPS loop
In this chapter we assume that you have a weekly MPS and you are not using a Dynamic VRO.
The idea of this chapter is to have to manage only one loop per part number and per week (i.e. till the next MPS).
The Pick-Up Order management becomes very simple: after the MPS process and the run of MRP, VRO loops are calculated, Pick-Up Orders are printed and stored in the template cart. If for a given supplier and a list of references you have to order 5 times till the next MPS (i.e. you have daily deliveries), you are going to use 5 copies of the same Pick-Up Order which will be stored in their associated folder of the template cart. You can use any of them for any order.
How can we do it? Lets come back to the previous example:
Mo | Tu | We | Th | Fr | Sa | Su | Mo | Tu | We | Th | Fr | Sa | Su | Mo | |
Demand | 100 | 80 | 110 | 90 | 20 | 50 | 0 | 90 | 120 | 100 | 50 | 80 | 100 | 0 | 80 |
Count | Yes | - | - | - | | | ||||||||||
Delivery | Yes | ||||||||||||||
Count | Yes | - | - | - | - | - | | | ||||||||
Delivery | Yes | ||||||||||||||
Count | Yes | - | - | - | | | ||||||||||
Delivery | Yes |
With the same constraints:
- Delivery Safety Time = 1 day
- Minimum Order Quantity = 40 pieces
- Packaging quantity = 20 pieces
- Batch size = 300 pieces
We found a loop of 660 for the first order sent on Monday, 710 for the order sent on Thursday. If we want to use only one loop value for the first week orders we need to choose the loop max: 710.
The consequence will be a higher in-house inventory after the delivery on the first Friday.
Conclusion
You have simplified the Pick-Up Order management but you have lost in inventory optimization. Anyway this is a good compromise if your demand is smooth like in a repetitive environment.
A main constraint remains: you have to calculate the loop for all deliveries ordered till the next MPS process and select the maximum found. It could be a huge task, except if you use the following method.
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