Fwd: RE: Minimum balance

If BPCS calculated the dynamic minimum balance every time a net requirement existed, instead of only once per run (ie static), you would have what is also called "Safety Time" rather than "Safety Stock". One way to produce this effect without modifying any code in BPCS is to use DRP, where you would add the safety time you want (in addition to what you have as minimum balance) within your distribution lead times (both in the Facility Planning Master and the DRP relationships).

Hope this tip works for you.

Ruben Orozco, CPIM
iWork Software, LLC
7900-200 Triad Center Dr
Greensboro, NC 27409
(336) 217-6110 ext 5882
 

  Note: forwarded message attached.

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• Subject: RE: Minimum balance
• From: "Damon, Mitch" <MDamon@xxxxxxxxxxxxxxxxx>
• Date: Wed, 11 Oct 2000 08:03:06 -0400

The seasonally is reflected in the finished goods forecast which should, in
the sense of classical MRP, drive the production requirements of the
component items.  With an estimated 2,700 items produced and the need to
capture seasonally at all levels of assembly the manual adjustments to
compensate for this missing functionality is staggering.  My hope was that
BPCS would be able to capture this data easily without the need for a bevy
of clerks to make manual adjustments.

Mitch Damon, CPIM
Planning Systems Manager
Logistics - Rochester, NY
(716) 383-1070 ext.250


        -----Original Message-----
        From:   Ian Bunn [SMTP:ian.bunn@progeny400.com]
        Sent:   Wednesday, October 11, 2000 4:14 AM
        To:     BPCS-L@midrange.com
        Subject:        Re: Minimum balance

        Mitch,
         
        The reason why I suggested going back over history is that you are
aware you have had demand that has been lower than your minimum balance.
The history will allow you to identify and highlight these low points and
indicate this accordingly.  I would also assume that your TPA report is
taking into consideration a number of factors and probably use the following
to drive production:
         
        1. Last years (actual) production
        2. Last years + growth production
        3. Sales 
        4. Capacity
        5. Demand
        6. Minimum balance
        7. Forecast
        8. Finger in the air
         
        Or a combination of these.
         
        Regards
        Ian

                ----- Original Message ----- 
                From: Damon, Mitch <mailto:MDamon@agrilinkfoods.com>  
                To: AAA-BPCS users listserve <mailto:BPCS-L@midrange.com>  
                Sent: 10 October 2000 13:10
                Subject: Minimum balance

                I believe that the method you recommend will provide me with
data on what
                WAS produced rather than a summation of what we WILL
produce.
                
                Mitch Damon, CPIM
                Planning Systems Manager
                Logistics - Rochester, NY
                (716) 383-1070 ext.250
                
                Mitch,
                 
                The best way to do this is to trawl through the product
receipts in the ITH
                file that is, of course, whether you keep transaction
history going back
                that far.
                 
                Regards
                 
                Ian Bunn
                Progeny/400
                
                ----- Original Message ----- 
                From: Damon, Mitch < mailto:MDamon@agrilinkfoods.com
<mailto:MDamon@agrilinkfoods.com> >  
                To: AAA-BPCS users listserve < mailto:BPCS-L@midrange.com
<mailto:BPCS-L@midrange.com> >  
                Sent: 06 October 2000 21:38
                Subject: Minimum balance
                
                We are trying to use the data in the KFP file to calculate
our annual
                production on a time phased SKU level basis.  The problem I
am having is
                that the "dynamic" minimum balance which is calculated from
the minimum
                balance days and minimum balance horizon is actually static.
By this I mean
                that the current minimum balance is used throughout the year
even though we
                will have significantly less demand in a few months which
will lower the
                minimum balance then but doesn't do us much good now.  Does
anyone have any
                ideas on how to address this issue?
                
                Thanks
                Mitch Damon, CPIM
                Planning Systems Manager
                Logistics - Rochester, NY
                (716) 383-1070 ext.250
                
                
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