Production, Capacity And Material Planning Page 53
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60Material Requirements Planning
Echelon stock policies (Q,R
) for MRP:
e
Consider a serial assembly system
Installation 1 is the downstream installation (final product)
the output of installation i is the input when producing one unit of item
i-1 at the immediate downstream installation
w
= installation inventory position at installation i
i
I
= echelon inventory position at installation i (at the same moment)
i
I
= w
+ w
+... w
i
i
i-1
1
a multi-echelon (Q,R) policy is denoted by (Q
,R
)
e
i
i
R
gives the reorder point for echelon inventory at i
e
i
Production Management
152
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