Item: AB Lead Time: Weeks

Lot size rule: Fixed Order Quant FOG: Parent: AB

Usage Factor: Children: None

Gross Requirements

Scheduled Receipts

Planned Order Receipts

Projected Available:

Planned Orders

Item: ABLead Time:Weeks

Lot size rule: Period Order Quant roasted:Parent: AB

Usage Factor:Children: None

Gross Requirements

Scheduled Receipts

Planned Order Receipts

Projected Available:

Planned Orders

The planned orders row become the gross

requirements row for each of their children.

For periodic order quantity roasted:

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 is needed to satisfy the demand for the next periods. If items are left from the initial inventory,

subtract the items and order iIt isroasted At the end of the demand period, there should be no items left in

inventory. This minimizes the number of items carried in inventory.