Re: Dynamic Min Balance

[Zzbpcs@xxxxxxx]

Hello again;
Les Mittman's calculation of total demand is correct while my original calc
of total demand was WAY off  ( I must have been asleep to think 180 days is 3 
months !! ).
However, I stand by my contention that the total demand is divided by the
number of WORKING days ( as defined in the shop calendar)
rather than divided by the min bal horizon days.

Thus we have total demand ( 550) divided by working days in the next 180 days
( 26 weeks X 5 days = 130 ) times the minbal days ( 15)
or  (550 / 130)    X 15  = 63.46 minimum balance

Les & I agree that this is VERY dynamic (recalculated every time MPS/MRP is 
run)
and should be used with care.

I believe that GENERALLY, minimum balance (AKA safety stock) should be used on
low level components/raw material; NOT on finished goods.

Sorry for the error in my original response.

Jim Barry
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