MRP Period Calculations Using Planning Fence Rules

MRP supply-and-demand netting calculations are generated on a period-by-period basis for each MRP-defined time bucket. The requirement generation uses the planning fence rule to determine what sources of demand to consider for a given duration.

The example is based on a G planning fence rule of 20 days. The greater than rule will be applied on a period-by-period basis within the planning fence duration.

Sources of Demand

Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

Forecast

100

100

100

100

100

100

Sales Orders

300

200

PLO

300

100

100

100

100

100

This MRP period-by-period comparison would be more pronounced if the MRP time buckets were in days and the rule duration remained at 20 days.

Note: The planning time-fence duration should approximate the replenishment lead time of the item.