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EXCEL-BASED MRP
TABLE OF CONTENTS
INTRODUCTION
TABLE OF LINKS
THE BUSINESS
DATA FILES:
Item Master
Supplier Master
Bill of Materials (BOM)
Purchase Orders
FINITE SCHEDULE
Make-to-Inventory Logic Explained
MRP CALCULATIONS:
Production Runs
BOM x 3
Allocate Inventory
Purchase Action Report
INVENTORY RATIONING:
Inventory Rationing Logic
Inventory Rationing Calculations
Components Pivot
Products Pivot
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Thank you for downloading this copy of Excel-Based MRP, I hope it will be of use to you.
Contact Us
This is a simple example of an MRP system, with a small amount of sample data, but it will also cater for many
thousands of records.
If you need assistance to adapt the system to your own manufacturing process, please do not hesitate to
contact me, Tony Rice at:
Production-Scheduling@Mweb.co.za
Or visit our web site:
www.Production-Scheduling.com
Features
The Excel-Based MRP system has the following features:
- VBA free, no macros, it is all formulas and PivotTables, and nothing is hidden
- demand is generated by a make-to-inventory Finite Schedule, but may also be from another source
- a single level Bill of Material structure
- inventory of raw material and components is allocated to the earliest scheduled product first, and will be
dynamically re-allocated as the schedule changes
- a Purchase Action Report identifies purchase orders which must be placed or chased to meet the schedule
Inventory Rationing
The last 3 sheets of the system addresses a question that many manufacturers have:
"What products should I make with the inventory I have on hand right now?"
The system takes into account raw materials that are used by more than one product, and rations the inventory
across the products so as to even out the product inventory cover as much as possible.
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Table of Links
This shows the worksheets that have links to other woksheets, either by having formulae
that refer to other worksheets, or by having a PivotTable based on a data base in another
worksheet.
Components Pivot
Allocate Inventory
Purchase Orders
Production Runs
Supplier Master
Finite Schedule
Products Pivot
Bill of Material
The Business
Item Master
BOM x 3
Worksheet
The Business
Item Master F
Supplier Master
Bill of Material F
Purchase Orders F F
Finite Schedule F F
Production Runs P
BOM x 3 F F
Allocate Inventory F F P
Purchase Action Report P
Inventory Rationing Calculations F F F F F
Components Pivot P
Products Pivot P
Formula link: F
PivotTable link: P
Chained PivotTables
Data flows from the Finite Schedule to the Purchase Action Report through a chain of links that includes
3 PivotTables:
P F P P Purchase
Finite Production Allocate Action
BOM x 3
Schedule Runs Inventory Report
Purchase F
Orders
Unlike formulas, PivotTables do not change automatically when the data is changed, they need to be refreshed.
You can refresh each PivotTable in turn by right clicking in it, and clicking on Refresh Data.
Alternatively you can click on the Refresh All icon which will refresh all the PivotTables in the workbook.
You will need to click it 3 times.
Put the Refresh All icon on you toolbar by right clicking on the toolbar, then Cutomise|Commands|Data
find the icon and drag it up onto your toolbar
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d to be refreshed.
in the workbook.
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This example is based in a fictional business that makes and sells shampoo.
Product Range
We are a new business, and the product range is small. We have 2 types of shampoo,
Apple Blossom and Fragrant Lemon, and each comes in 3 sizes 100ml, 250ml and 500ml.
Our product range is:
The Process
We buy a base shampoo in bulk, pump it into a blending vessel, add either apple or lemon
essence to it, stir it, pump it into a holding vessel from where it is fed to the filling line where
the bottles are filled, labelled, shrink wrapped 6 together, packed into corrugated cartons,
and stacked on pallets.
Bill of Materials
There is one base shampoo, two fragrances, three bottle sizes and six labels. The 100ml
and 250ml bottles are fitted with a flip top cap, and the 500ml bottle has a screw cap. The
100ml bottles are packed 48 to a small carton, the 250ml is packed 48 in a large carton and
the 500ml uses the same carton but 24 to a carton. Two of the bottle labels are pasted on
the carton, one on each end.
Glue, shrink wrap and adhesive tape for the cartons are considered to be consumables,
and the pallets are hired from a national pallet pool. The minimum that a customer can buy
is one carton, so that is the SKU (stock keeping unit).
Capacities
Blending is quicker than filling, 100ml and 250ml bottles can be filled at 70 per minute, and
500ml bottles at 40 per minute. To change the line from one bottle size to another takes
time, but we shall ignore change over times in this example.
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Item Master
The item master file contains details of both finished products and raw materials.
This data would typically be stored in a host system, and transferred to Excel via an ODBC link and MS Query.
Unit of
Code Description Measure Warehouse Supplier Supplier Name
AB100 Apple Blossom 100ml carton FP 01 #N/A
AB250 Apple Blossom 250ml carton FP 01 #N/A
AB500 Apple Blossom 500ml carton FP 01 #N/A
FL100 Fragrant Lemon 100ml carton FP 01 #N/A
FL250 Fragrant Lemon 250ml carton FP 01 #N/A
FL500 Fragrant Lemon 500ml carton FP 01 #N/A
BS01 Base Shampoo litre RM AC01 Ace Chemicals
ESA Apple essence litre RM CE01 Chang Essences
ESL Lemon essence litre RM CE01 Chang Essences
BT100 Bottle 100ml each RM BP01 Best Plastics
BT250 Bottle 250ml each RM BP01 Best Plastics
BT500 Bottle 500ml each RM BP01 Best Plastics
CAPF Flip cap each RM BP01 Best Plastics
CAPS Screw cap each RM BP01 Best Plastics
LAB10 Label Apple Blossom 100ml each RM DP01 Dave's Printing
LAB25 Label Apple Blossom 250ml each RM DP01 Dave's Printing
LAB50 Label Apple Blossom 500ml each RM DP01 Dave's Printing
LFL10 Label Fragrant Lemon 100ml each RM DP01 Dave's Printing
LFL25 Label Fragrant Lemon 250ml each RM DP01 Dave's Printing
LFL50 Label Fragrant Lemon 500ml each RM DP01 Dave's Printing
CARS Carton small each RM EC01 Eduardo Corrugates
CARL Carton large each RM EC01 Eduardo Corrugates
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Lead
Time
Days Inventory
1,854
1,470
470
488
1,148
766
14 34,276
30 1,494
30 1,002
21 122,472
21 184,968
21 36,516
21 65,738
21 37,818
7 211,796
7 266,776
7 24,964
7 32,140
7 83,496
7 117,354
21 998
21 4,368
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Supplier Master
Bill of Material
This is a typical structure of a single level bill of materials, describing the relationship between
products and components
Purchase Orders
This table lists the components that are on order from the suppliers, and the date they are due to
be delivered.
This schedule is contained in the MRP system, purely to generate a demand for materials.
Explanations of the fomulae, and how the system is constructed, is contained in Section 42 of the scheduling tutorial, downloadable from
www.production-scheduling.com
Start of the first job: 14/3 8:00 AB100 AB250 AB500 FL100 FL250 FL500 AB100 AB250 AB500 FL100 FL250 FL500
Product running now: AB500 Speed - cartons per hour 88 88 175 88 88 175
Quantity committed: 110 Forecast sales - cartons per week 1,000 1,400 800 200 1,200 1,600
Min cover - weeks 0.5 0.5 0.5 0.5 0.5 0.5
Utilization: 35.48% Max cover - weeks 2.0 2.0 2.0 2.0 2.0 2.0
Min cover - cartons 500 700 400 100 600 800
Max cover - cartons 2,000 2,800 1,600 400 2,400 3,200
Idle Run Lowest Offs Next Invento For- Min Min Max To
Product Force Qty Force hours Force hours Start Stop Projected Inventory - units Projected Cover - weeks Cover et Prod ry Speed cast Cover cartons cartons make
Opening stock: 14/3 8:00 1,854 1,470 470 488 1,148 766 1.85 1.05 0.59 2.44 0.96 0.48
AB500 110 0.0 0.6 14/3 8:00 14/3 8:37 1,850 1,465 577 487 1,144 760 1.85 1.05 0.72 2.44 0.95 0.48 0.48 6 FL500 760 175 1600 0.5 800 3200 2580
FL500 2,580 0.0 14.7 14/3 8:37 14/3 23:22 1,763 1,342 507 470 1,038 3,200 1.76 0.96 0.63 2.35 0.87 2.00 0.63 3 AB500 507 175 800 0.5 400 1600 1124
Idle 0 22.4 0.0 14/3 23:22 15/3 21:48 1,629 1,155 400 443 878 2,986 1.63 0.83 0.50 2.22 0.73 1.87 0.50 3 AB500 400 175 800 0.5 400 1600 1234
AB500 1,234 0.0 7.1 15/3 21:48 16/3 4:51 1,587 1,096 1,600 435 828 2,919 1.59 0.78 2.00 2.17 0.69 1.82 0.69 5 FL250 828 87.5 1200 0.5 600 2400 1712
Idle 0 31.9 0.0 16/3 4:51 17/3 12:43 1,397 831 1,449 397 600 2,615 1.40 0.59 1.81 1.98 0.50 1.63 0.50 5 FL250 600 87.5 1200 0.5 600 2400 1960
FL250 1,960 0.0 22.4 17/3 12:43 18/3 11:07 1,264 644 1,342 370 2,400 2,402 1.26 0.46 1.68 1.85 2.00 1.50 0.46 2 AB250 644 87.5 1400 0.5 700 2800 2383
AB250 2,383 0.0 27.2 18/3 11:07 19/3 14:21 1,102 2,800 1,212 338 2,205 2,143 1.10 2.00 1.52 1.69 1.84 1.34 1.10 1 AB100 1102 87.5 1000 0.5 500 2000 964
Idle 0 101.1 0.0 19/3 14:21 23/3 19:28 500 1,957 731 217 1,483 1,180 0.50 1.40 0.91 1.09 1.24 0.74 0.50 1 AB100 500 87.5 1000 0.5 500 2000 1609
AB100 1,609 0.0 18.4 23/3 19:28 24/3 13:51 2,000 1,804 643 195 1,352 1,004 2.00 1.29 0.80 0.98 1.13 0.63 0.63 6 FL500 1004 175 1600 0.5 800 3200 2322
Idle 0 21.5 0.0 24/3 13:51 25/3 11:19 1,872 1,625 541 170 1,198 800 1.87 1.16 0.68 0.85 1.00 0.50 0.50 6 FL500 800 175 1600 0.5 800 3200 2538
FL500 2,538 0.0 14.5 25/3 11:19 26/3 1:49 1,785 1,504 472 152 1,095 3,200 1.79 1.07 0.59 0.76 0.91 2.00 0.59 3 AB500 472 175 800 0.5 400 1600 1160
Idle 0 15.1 0.0 26/3 1:49 26/3 16:56 1,696 1,379 400 135 987 3,056 1.70 0.98 0.50 0.67 0.82 1.91 0.50 3 AB500 400 175 800 0.5 400 1600 1234
AB500 1,234 0.0 7.1 26/3 16:56 26/3 23:59 1,654 1,320 1,600 126 937 2,989 1.65 0.94 2.00 0.63 0.78 1.87 0.63 4 FL100 126 87.5 200 0.5 100 400 278
Idle 0 21.9 0.0 26/3 23:59 27/3 21:55 1,523 1,137 1,496 100 780 2,780 1.52 0.81 1.87 0.50 0.65 1.74 0.50 4 FL100 100 87.5 200 0.5 100 400 304
FL100 304 0.0 3.5 27/3 21:55 28/3 1:23 1,502 1,108 1,479 400 755 2,747 1.50 0.79 1.85 2.00 0.63 1.72 0.63 5 FL250 755 87.5 1200 0.5 600 2400 1791
Idle 0 21.7 0.0 28/3 1:23 28/3 23:07 1,373 927 1,376 374 600 2,540 1.37 0.66 1.72 1.87 0.50 1.59 0.50 5 FL250 600 87.5 1200 0.5 600 2400 1960
FL250 1,960 0.0 22.4 28/3 23:07 29/3 21:31 1,240 740 1,269 347 2,400 2,327 1.24 0.53 1.59 1.74 2.00 1.45 0.53 2 AB250 740 87.5 1400 0.5 700 2800 2276
Idle 0 4.8 0.0 29/3 21:31 30/3 2:21 1,211 700 1,246 342 2,365 2,281 1.21 0.50 1.56 1.71 1.97 1.43 0.50 2 AB250 700 87.5 1400 0.5 700 2800 2321
AB250 2,321 0.0 26.5 30/3 2:21 31/3 4:53 1,053 2,800 1,120 310 2,176 2,028 1.05 2.00 1.40 1.55 1.81 1.27 1.05 1 AB100 1053 87.5 1000 0.5 500 2000 1016
Idle 0 92.9 0.0 31/3 4:53 4/4 1:47 500 2,026 678 199 1,512 1,143 0.50 1.45 0.85 1.00 1.26 0.71 0.50 1 AB100 500 87.5 1000 0.5 500 2000 1609
AB100 1,609 0.0 18.4 4/4 1:47 4/4 20:10 2,000 1,873 590 178 1,381 968 2.00 1.34 0.74 0.89 1.15 0.61 0.61 6 FL500 968 175 1600 0.5 800 3200 2360
Idle 0 17.6 0.0 4/4 20:10 5/4 13:49 1,894 1,725 506 156 1,255 800 1.89 1.23 0.63 0.78 1.05 0.50 0.50 6 FL500 800 175 1600 0.5 800 3200 2538
FL500 2,538 0.0 14.5 5/4 13:49 6/4 4:19 1,808 1,605 437 139 1,151 3,200 1.81 1.15 0.55 0.70 0.96 2.00 0.55 3 AB500 437 175 800 0.5 400 1600 1196
Idle 0 7.8 0.0 6/4 4:19 6/4 12:04 1,762 1,540 400 130 1,096 3,126 1.76 1.10 0.50 0.65 0.91 1.95 0.50 3 AB500 400 175 800 0.5 400 1600 1234
Projected Inventory
Cover
2.5
2.3
2.0
Column P
Column Q
1.8
Column R
Weeks
1.5
Column S
1.3
Column T
1.0 Column U
0.8
0.5
0.3
12-Mar 15-Mar 18-Mar 21-Mar 24-Mar 27-Mar 30-Mar 2-Apr 5-Apr 8-Apr
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You will see from the chart of inventory cover, that the model attempts to keep the inventory of each product
between the minimum and maximum.
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Sum - Qty
Prod/Run Prod Product Start Run
AB100 23/3 19:28 1609
/1 ### 1609 1
AB250 18/3 11:07 2383
30/3 2:21 2321
AB500 14/3 8:00 110
15/3 21:48 1234
26/3 16:56 1234
FL100 27/3 21:55 304
FL250 17/3 12:43 1960
28/3 23:07 1960
FL500 14/3 8:37 2580
25/3 11:19 2538
/1 ### 2538 1
Total Result 22380
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This sheet allows for 3 production runs of each product. The Bill of Materials is repeated 3 times,
and the quantities of each component required for each production run, is calculated.
Component
Product/ Qty Production Production Quantity
Run Component each Run Index Start Date Qty Required
AB100/1 BS01 4.8 #N/A 30-Dec-99 0 0
AB100/1 BT100 48 #N/A 30-Dec-99 0 0
AB100/1 CAPF 48 #N/A 30-Dec-99 0 0
AB100/1 CARS 1 #N/A 30-Dec-99 0 0
AB100/1 ESA 0.05 #N/A 30-Dec-99 0 0
AB100/1 LAB10 50 #N/A 30-Dec-99 0 0
AB250/1 BS01 12 #N/A 30-Dec-99 0 0
AB250/1 BT250 48 #N/A 30-Dec-99 0 0
AB250/1 CAPF 48 #N/A 30-Dec-99 0 0
AB250/1 CARL 1 #N/A 30-Dec-99 0 0
AB250/1 ESA 0.12 #N/A 30-Dec-99 0 0
AB250/1 LAB25 50 #N/A 30-Dec-99 0 0
AB500/1 BS01 12 #N/A 30-Dec-99 0 0
AB500/1 BT500 24 #N/A 30-Dec-99 0 0
AB500/1 CAPS 24 #N/A 30-Dec-99 0 0
AB500/1 CARL 1 #N/A 30-Dec-99 0 0
AB500/1 ESA 0.12 #N/A 30-Dec-99 0 0
AB500/1 LAB50 26 #N/A 30-Dec-99 0 0
FL100/1 BS01 4.8 #N/A 30-Dec-99 0 0
FL100/1 BT100 48 #N/A 30-Dec-99 0 0
FL100/1 CAPF 48 #N/A 30-Dec-99 0 0
FL100/1 CARS 1 #N/A 30-Dec-99 0 0
FL100/1 ESL 0.05 #N/A 30-Dec-99 0 0
FL100/1 LFL10 50 #N/A 30-Dec-99 0 0
FL250/1 BS01 12 #N/A 30-Dec-99 0 0
FL250/1 BT250 48 #N/A 30-Dec-99 0 0
FL250/1 CAPF 48 #N/A 30-Dec-99 0 0
FL250/1 CARL 1 #N/A 30-Dec-99 0 0
FL250/1 ESL 0.12 #N/A 30-Dec-99 0 0
FL250/1 LFL25 50 #N/A 30-Dec-99 0 0
FL500/1 BS01 12 #N/A 30-Dec-99 0 0
FL500/1 BT500 24 #N/A 30-Dec-99 0 0
FL500/1 CAPS 24 #N/A 30-Dec-99 0 0
FL500/1 CARL 1 #N/A 30-Dec-99 0 0
FL500/1 ESL 0.12 #N/A 30-Dec-99 0 0
FL500/1 LFL50 26 #N/A 30-Dec-99 0 0
/1 0 0 7 4-Apr-09 1609 0
/1 0 0 7 4-Apr-09 1609 0
/1 0 0 7 4-Apr-09 1609 0
/1 0 0 7 4-Apr-09 1609 0
/1 0 0 7 4-Apr-09 1609 0
/1 0 0 7 4-Apr-09 1609 0
/1 0 0 7 4-Apr-09 1609 0
/1 0 0 7 4-Apr-09 1609 0
/1 0 0 7 4-Apr-09 1609 0
/1 0 0 7 4-Apr-09 1609 0
AB100/2 BS01 4.8 #N/A 30-Dec-99 0 0
AB100/2 BT100 48 #N/A 30-Dec-99 0 0
AB100/2 CAPF 48 #N/A 30-Dec-99 0 0
AB100/2 CARS 1 #N/A 30-Dec-99 0 0
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Columns A to D are a PivotTable of the database on BOM x 3, and the rest are formulae.
At row 150 there are links to the Purchase Orders worksheet.
Here component inventory is allocated to the earliest production runs first.
2
Sum - Component Quantity Required
Item
ComponentStart Date Product/Run Component
Start Date Index Description
BS01 12/30/99 AB100/1 0 #N/A #N/A
AB100/2 0 #N/A #N/A
AB100/3 0 #N/A #N/A
AB250/1 0 #N/A #N/A
AB250/2 0 #N/A #N/A
AB250/3 0 #N/A #N/A
AB500/1 0 #N/A #N/A
AB500/2 0 #N/A #N/A
AB500/3 0 #N/A #N/A
FL100/1 0 #N/A #N/A
FL100/2 0 #N/A #N/A
FL100/3 0 #N/A #N/A
FL250/1 0 #N/A #N/A
FL250/2 0 #N/A #N/A
FL250/3 0 #N/A #N/A
FL500/1 0 #N/A #N/A
FL500/2 0 #N/A #N/A
FL500/3 0 #N/A #N/A
BT100 12/30/99 AB100/1 0 #N/A #N/A
AB100/2 0 #N/A #N/A
AB100/3 0 #N/A #N/A
FL100/1 0 #N/A #N/A
FL100/2 0 #N/A #N/A
FL100/3 0 #N/A #N/A
BT250 12/30/99 AB250/1 0 #N/A #N/A
AB250/2 0 #N/A #N/A
AB250/3 0 #N/A #N/A
FL250/1 0 #N/A #N/A
FL250/2 0 #N/A #N/A
FL250/3 0 #N/A #N/A
BT500 12/30/99 AB500/1 0 #N/A #N/A
AB500/2 0 #N/A #N/A
AB500/3 0 #N/A #N/A
FL500/1 0 #N/A #N/A
FL500/2 0 #N/A #N/A
FL500/3 0 #N/A #N/A
CAPF 12/30/99 AB100/1 0 #N/A #N/A
AB100/2 0 #N/A #N/A
AB100/3 0 #N/A #N/A
AB250/1 0 #N/A #N/A
AB250/2 0 #N/A #N/A
AB250/3 0 #N/A #N/A
FL100/1 0 #N/A #N/A
FL100/2 0 #N/A #N/A
FL100/3 0 #N/A #N/A
FL250/1 0 #N/A #N/A
FL250/2 0 #N/A #N/A
FL250/3 0 #N/A #N/A
CAPS 12/30/99 AB500/1 0 #N/A #N/A
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5 6 8
Balance
Supplier Supplier Name Inventory Remaining Get In On order
#N/A #N/A #N/A #N/A #N/A
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Components that will be required after inventory has been exhausted are listed here
and compared with components on order.
Columns A to F are a PivotTable of the Allocate Inventory worksheet, and G contains
a formula to calculate projected inventory of each component. Negative projected
inventory indicates that orders need to be chased or placed to support scheduled
production.
Get In - all -
Data
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Purchase Action Report
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Purchase Action Report
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Purchase Action Report
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
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Purchase Action Report
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Purchase Action Report
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Purchase Action Report
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Purchase Action Report
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"What products should I make with the inventory I have on hand right now?"
The system takes into account raw materials that are used by more than one product, and rations the
inventory across the products so as to even out the product inventory cover as much as possible.
You will see that On the Inventory Rationing Calculation sheet, there are 3 groups of columns:
- Bill of Materials
- First Pass Calculations
- Second Pass Calculations
The finished product inventory and forecast is used to calculate finished product inventory cover. In other
words, how many weeks the finished product inventory will last if sales are according to forecast.
Imagine that all the finished products in inventory are broken down to their component parts, and
"pooled" by being put back into the raw material warehouse, and added to the component inventory that
has not yet been used. The forecast usage of each component is then calculated from the sales forecast
of the products they are used on, times the quantity used in each case of product. From this, the
average cover of each component is calculated.
Finished products which have a cover above the average, then have their components and their forecast
eliminated from the calculation, and the average is re-calculated. The quantity of each product that can
be made is constrained by the component with the lowest average cover. Components are alloacted to
products on that basis, the new projected inventories of products and components are calculated, and
the Second Pass Calculations repeat the logic again to determinte what products could be made with the
components that are left over.
F
Components
P Pivot
Inventory
Rationing
Calculation
P
Products Pivot
F
Formula link: F
PivotTable link: P
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Data
Data