Process Planning and Control Assignment

Planned order release is the delivering of a planned replenishment order for the required item.

It is an important part in MRP, which is determined by both leading time and projected available balance. Planned order release is an action needed to avoid future problem. When the projected available balance becomes negative or below the safety stock in the MRP record, it will not be sufficient to satisfy the requirement, an order for additional material should be placed in advance. And the leading time decides when the order should be release, for example, given that the lead time is 2 weeks, when the projected available balance in week 3 is not sufficient to satisfy the demand, there should be an replenishment order in week 1 as it take two weeks to prepare and deliver the material required. Based on back scheduling, the planned order release is frequently revised. Planned order releases are different from scheduled receipts, there are two major reasons for that. Planned order release explode to gross requirement as new requirement of lower-level component will derive from the order of the parent. Besides, planned order releases are easier to change as it is only a plan and there is no material being specifically committed to it and being no longer available. The size of the order is determined by various replenishment policy such as economic order quantity (EOQ) and periodic order quantity (POQ).

Question 1.

a)

b)

The projected available balance is not sufficient to satisfy the demand in week 2 due to no order has been received. In order to keep the inventory sufficient, an open order for 40 units due to be delivered in week two should be placed.