Production, Capacity And Material Planning Page 51
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60Material Requirements Planning
⌧All demands and orders occur at the beginning of the time period
⌧orders are initiated immediately after the demands, first for the final items
and then successively for the components
⌧all demands and orders are for an integer number of units
⌧T= planning horizon
= lead time for item i
⌧τ
i
= safety stock for item I
⌧s
i
= reorder point for item I
⌧R
i
=Fixed order quantity of item i
⌧Q
i
= external requirements of item i in period t
⌧D
it
Production Management
150
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