2 3 4 5 6 7 8 9 10 Item: AB511 Lead Time: 3 Weeks Lot size rule: Fixed Order Quant (FOQ): 350 Parent: AB500 Usage Factor: 1 Children: None 1 Gross Requirements Scheduled Receipts Planned Order Receipts Projected Available: 650 Planned Orders Lead Time: 2 Weeks Item: AB521 Lot size rule: Period Order Quant (POO 3 Usage Factor: 3 Parent: AB500 Children: None 1 2 3 4 5 6 7 8 9 10 Gross Requirements Scheduled Receipts Planned Order Receipts Projected Available: 1900 Planned Orders For periodic order quantity (POQ): When calculating the first planned order quantity, subtract the projected inventory level from the demand over the next n periods. Use that quantity as the POQ. Example: A replenishment order of 100 is needed to satisfy the demand for the next 3 periods. If 10 items are left from the initial inventory, subtract the 10 items and order 90 (i.e., POQ = 100-10 = 90). At the end of the demand period, there should be no items left in inventory. This minimizes the number of items carried in inventory. = 2 3 4 5 6 7 8 9 10 Item: AB511 Lead Time: 3 Weeks Lot size rule: Fixed Order Quant (FOQ): 350 Parent: AB500 Usage Factor: 1 Children: None 1 Gross Requirements Scheduled Receipts Planned Order Receipts Projected Available: 650 Planned Orders Lead Time: 2 Weeks Item: AB521 Lot size rule: Period Order Quant (POO 3 Usage Factor: 3 Parent: AB500 Children: None 1 2 3 4 5 6 7 8 9 10 Gross Requirements Scheduled Receipts Planned Order Receipts Projected Available: 1900 Planned Orders For periodic order quantity (POQ): When calculating the first planned order quantity, subtract the projected inventory level from the demand over the next n periods. Use that quantity as the POQ. Example: A replenishment order of 100 is needed to satisfy the demand for the next 3 periods. If 10 items are left from the initial inventory, subtract the 10 items and order 90 (i.e., POQ = 100-10 = 90). At the end of the demand period, there should be no items left in inventory. This minimizes the number of items carried in inventory. =