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Former Member
Jan 11, 2011 at 04:09 AM

replenishment

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Hello ,

I have a replenishment lead time question I like to share with you.

Inward movement

|............old MAD...Order Qty 20..

|....................x<----


|Requested delivery date

| 100.....................50.........................60

-


> Time

|.........100.........................40.............20..........50

|..........................................................|----


>confirmation date

|..........................................................| New Material availability date (MAD)

Outward movement

Above: Scenario where Complete Delivery required when Replenishment lead time (RLT) is not used.

-


Inward movement

|..................MAD....

|....................X<----


|.confirmed delivery date.

|..100...................50.........................60

-


>Time

|..........100.....................40...........................50

| RLT

| -


>

Outward movement

Above: Scenario where Complete Delivery required when Replenishment lead time Is Used.

Referring to the 2nd scenario diagram, why is it that the order can be confirmed at requested delivery date and why the MAD is possible at that time? The MAD derived seems to be when the stock is ZERO (100 inward , 100 outward). Why is it that when RLT is used, there is stock at this time?

Does RLT not mean more time is considered for stock availabilty? If so, why is it able to confirm delivery earlier than the 1st scenario?

Is there a simple way of explaining this?

Thanks in advance.

John Tivoli

Edited by: johntivoli on Jan 11, 2011 5:26 AM