Re: Safety stock

[Lee Dixon <leoncrisp@xxxxxxxxx>]

Thank you it makes sense



> On Feb 13, 2014, at 12:24 PM, "Al Mac Wow" <macwheel99@xxxxxxxxxx> wrote:
>
> If you study MRP, there is an order policy code system where you can have
> different rules for different parts.
>
>
>
> Example: a customer part has seasonal demand.  As the season approaches, you
> stock up on extra inventory, based on MRP using the order policy code
> formula to create safety stock of some number of weeks extra supply.  Then
> as the season ends, the safety stock goes back to zero.
>
>
>
> We use minimum balance for safety stock on selected items, mainly end
> customer parts where we have a contract with the customer for us to be able
> to ship them whatever quantity they ask for the same day they ask for it,
> but if they cancel using that part, then they will pay us for all that we
> have in the pipeline of that part.
>
>
>
> A significant problem for us is that many employees pay no attention to MRP.
> They manufacture based on what the customer orders call for, ignoring the
> minimum balance requirement.  MRP does not ignore it.  This contributes to
> our past due, since the safety stock is supposed to compensate for the
> customer lead time violations.
>
>
>
> Al Mac = Alister William Macintyre
>
> -----Original Message-----
> From: bpcs-l-bounces@xxxxxxxxxxxx [mailto:bpcs-l-bounces@xxxxxxxxxxxx] On
> Behalf Of Arthur Shaffer
> Sent: Thursday, February 13, 2014 10:41 AM
> To: BPCS ERP System
> Subject: Re: [BPCS-L] Safety stock
>
>
>
> If you are running MPS/MRP, the assumption is that you will only put into
> inventory the quantity based on the yield.
>
> When you put more into inventory and then run the planning, you will receive
> messages to cut back planning because you have more inventory.
>
>
>
> Why not use the minimum balance?
>
>
>
> Thanks
>
>
>
> Art Shaffer, CPIM
>
> Master CPIM Instructor
>
> ABShaffer@xxxxxxxxx
>
> 908-403-2803
>
>
>
>
>
>
>
> > ________________________________
>
> > From: Lee Dixon <leoncrisp@xxxxxxxxx>
>
> > To: BPCS ERP System <bpcs-l@xxxxxxxxxxxx>
>
> > Sent: Thursday, February 13, 2014 10:48 AM
>
> > Subject: [BPCS-L] Safety stock
>
>
>
> > I have a notion that I can use the yield factor to build safety stocks!
> Does this sound far fetched. It looks like if I do this everything will
> still be cost properly and back flushed ok. What's the danger?
>
>
> > RD
>
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>
>
>
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