Re: Dynamic Min Balance

[Zzbpcs@xxxxxxx]

The dynamic minimum balance calculation is as follows:

Sum the demand during Min Bal Horizon days - normal calendar- not shop 
calendar days ( useing the demand code(s) as appropriate).
Then divide that total demand by the number of WORKING / shop calendar days
to arrive at the total demand per working day.
Then multiple that demand per day by the Min Bal Days.
"Sometimes" our friend 'rounding error' will give you a slightly different 
answer than the computer.

In your example, in the next 180 days you have demand of 100 (Cust ord)
plus 90 plus 90 (next 2 months forecast) = 280 total demand.
Divided by number of working days in the next 3 months (65 if you have only 
wekends as non-working days).
280 div by 65 = 4.30 demand per working day.
Multiplied by Min Bal Days : 4.30 X 15 = 64.5.

Be aware that BPCS will EITHER calculate a new minimum balance every time it 
is run OR always used a fixed minimum balance ( if Min Bal Hor Days & Min Bal 
Dys
is zero). It will NOT use some 'basic' minimum' PLUS a dynamic minimum.
Also be aware that since the result of the calculation is stored in the 
Item/Fac 
record, it does NOT WORK in simulation mode !!
Also be aware that it will be re-calculated EVERY time MPS/MRP is run,
so if you run it nightly, you COULD get a different answer every night.
Order Policy codes, lot sizing, and min order percentage CAN help take some 
of  the
'noise' out of exception messages resulting from such a dynamic min bal.
You probably do NOT want to use this technique on every item !

For more detailed info about "the wonders of MRP140"
contact me directly ( NOT thru "me-too" messages)
Jim Barry - 15 years experience; BPCS Implementation Consultant
e-mail ZZBPCS@AOL.COM

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