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Interlevel equilibrium

By Anonymous - Posted on 18 May 2012

In a net change MRP environment, for every transaction, the MRP records are rebalanced. The projected on-hand quantities (net requirements) are recalculated, and the planned order releases are realigned or changed, as required, before the record is returned to file. All inventory records on file are in individual balance at all times.

The concept of inter-level or file equilibrium extends the principle of balance to sets of records that are logically related. This means that gross requirements for every item must correspond to the quantities and timing of planned order releases of their parent items.

The restoration of inter-level equilibrium necessitates a (partial) explosion of requirements. Lower-level item records are identified via the product structure file and are retrieved. They are then reprocessed so as to realign their logical linkage to the parent item, and to reestablish a balance in the status of the individual items. To the extent that this reprocessing changes the planned order release schedules of the component items, the explosion progresses further down the product structure, through as many levels as required.

Transaction-triggered explosions, however, are au nique characteristic of a net change MRP system. The principle of inter-level equilibrium demands that inventory transactions, when presented to the system, be fully processed. The updating process triggered by a given transaction is completely carried out downward through the product structure, as required.

Read the attached document for more details.

inter level equillibrium.pdf1.46 MB

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