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Melvin:

The logic of MRP says that when the projected balance drops below your 
minimum balance (which could be 0), then a Planned Order should be suggested.  
The 
size of the Planned Order is determined by the Order Policy Code.  You indicate 
that you are using Multiple of Lot Size with a Lot Size of 120.  You have 5 
Onhand.  So, when MRP sees the need to get more, it will create a Planned Order 
for 120 (or multiple of 120) since that is what you have asked it to do.  The 
5 Onhand are not part of the equation.  That is, you do have some, but you 
need more and you must order 120 at a time.

Hope this helps.

Les Mittman
BPCS Consultant
Phone:  847-831-9388

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