About this Presentation
Make-to-stock (MTS)/ Availability (MTA) environments provide clear priority to the plant most of the time, however cases can arise where demand can outstrip available supply. This presentation will demonstrate the solution to retaining a common % Buffer Remaining work order prioritization, but switching between stock and time buffers as required to keep the priority relevant. The normal priority for MTS/MTA is % Stock Remaining: On Hand + Supply / Buffer Size; in cases where the demand > supply, demand can be deducted to demonstrate additional penetration into the buffer, resulting in a negative % Buffer Remaining. This negative number does not show when the demand is required; it could be today, it could be three days from now. Instead of continuing with % Stock Buffer remaining, we use an algorithm to switch to % Time Buffer remaining, using the due date of the demand that will result in the shortage.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
The netting demand process can help to identify upcoming shortages, but it can also lead to unnecessary increases in inventory or student syndrome.
The concept of 'shortage begins date' can provide clarity on which items need to be expedited and when.
Switching from make-to-stock to make-to-order based on upcoming demand can help to improve prioritization.
Instructor(s)
