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Jun 24, 2020 at 12:18 PM

Non Stocking SFG and Forward Consumption


Hi Experts

I have question with regards to non stocking of an SFG and Forward consumption of the excess SFG. The scenario is that a Certain SFG can not be stored and must be converted into the relevant finished goods within the same period of production. Will setting the Inventory Holding Policy of the SFG to 1 ensure that the optimizer generates planned production for the future periods since the Batch size of the SFG is more than the current weeks requirements. If yes will the additional requirements of the future periods be allocated based ABC code or split equally. I have attached a table below giving a visual example.

In the Table above we have an SFG with a Min as well as an incremental lot size of 5000, assume capacity also only allows production of 5000, there are 3 products made using this SFG with a 1 to 1 ratio, the total demand for week 31 is 4200 and an SFG production of 5000 will take place to meet the demand, will the optimizer automatically include Planned production for week 32 to consume the remaining 800 units either equally or based on ABC code.