Roel, The system jumbled up a cut and paste that I did. I can't make sense out of my own response. I apologize. I'll write this again with no tabs and no cut an paste. If you set your "Minimum Balance Horizon Days" (For example to 30 days), then the system looks at you demand for the next 30 days. It divides that by the number of working days to calculate what a days' worth of inventory is. The "Minimum Balance Days" are then set to determine how much inventory you wish to keep. (Say, 3 Days). The concept is that, as the demand starts to dwindle, you will be keeping less and less inventory in the three days of minimum balance. When the demand goes away, so will the three days of minimum inventory. Using 0 Horizon Days and 0 Minimum Balance Days would mean "I don't want to see any demand and I don't want to keep any days worth of inventory. (That's why MRP is returning safety stock = 0). The trick is to figure out exactly what the best combination of Horizon Days and Minimum Balance Days is for you. The further out you place the Horizon Days (say 180 days), the smoother the demand will be. Bur you run the risk of extending beyond your known demand. The further in you make the Horizon days, the more volatile the demand will be (more peaks and valleys). But you are safer to not running out of stock. Either way the demand will drive the volume of inventory. I hope this helps. If you have any questions, please email me at firstname.lastname@example.org Warm regards, Ed DeHarde Senior Consulting Director Unbeaten Path International www.unbeatenpathintl.com ----- Original Message ----- From: "Roel Bakker" <RBakker@mhimee.nl> To: <BPCS-L@midrange.com> Sent: Friday, February 22, 2002 7:23 AM Subject: Fading out products. > Hello fellow BPCS victims. > > We are using BPCS V6.1.1.. > My question: When a parent itemt is fading out / fasing out (let's say > over 1 year); how can we control this easily. > in CIC we are using dynamic minimum stock balances for components. We do > not wish to have obsolete stock after fasing out, but if we put the > balance days = 0 & horizon days = 0 than: > MRP generates inmediately a safety stock = 0, which is of course > dangerous for business, because we still have to deliver for 1 year. > > If we do not change the dynamic safety stock, we run the risk of > obsolete stock, because the vendor lead time to our mother company in > Japan is 3 months. > > Please let me know your advice. > > Thank you in avdance, > > Roel Bakker > Production Planning & Procurement > Turbocharger Division > Mitsubishi Heavy Industries Equipment Europe B.V. > Tel: 0031-36-5388223 > Fax: 0031-36-5388222 > E-mail: email@example.com > > _______________________________________________ > This is the SSA's BPCS ERP System (BPCS-L) mailing list > To post a message email: BPCS-L@midrange.com > To subscribe, unsubscribe, or change list options, > visit: http://lists.midrange.com/cgi-bin/listinfo/bpcs-l > or email: BPCS-Lfirstname.lastname@example.org > Before posting, please take a moment to review the archives > at http://archive.midrange.com/bpcs-l. > >
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