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Planned Order Releases - MRP System
In an MRP system, if gross requirements exceed the quantity on hand and on order, a net requirement results. Planned orders are created to equal or exceed the net requirements in order to create a balance between supply and demand.
Period
Each period refers to a future time. The time period, or time slot, may be a day, a week or a month. Another name for these time slots is time bucket. The size of the bucket will be discussed later.
EOQ formula The EOQ equation assumes demand is constant and steady. It also assumes that demand for different items is independent. This is inappropriate for controlling inve
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