Production, Capacity And Material Planning Page 52
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60Material Requirements Planning
Installation stock policies (Q,R
) for MRP:
i
a production order is triggered if the installation stock minus safety
stock is insufficient to cover the requirements over the next τ
periods
i
an order may consist of more than one order quantity Q
if lead time τ
= 0, the MRP is equal to an installation stock policy.
i
safety stock = reorder point
Production Management
151
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