Calculate Net Requirements
Calculate net requirements and planned order releases for one component.
Component C-20 has gross requirements of 0, 0, 800, and 200 across weeks 1-4. On hand is 300. A scheduled receipt of 200 arrives in week 2. Lot size is fixed at 500. Supplier lead time is two weeks. Gross requirements -> projected available -> net requirements -> planned receipt -> planned release The common trap is to buy the gross requirement of 1,000 pieces. That ignores 300 pieces on hand, 200 pieces already scheduled, the fixed lot size, and the two-week offset between releasing and receiving supply. Start projected balance Begin week 1 with 300 on hand and no…
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