The Basics
3 Months of Consumption / 63 days
What is ADD
You take it , we make it
What is a pull system
MAX - OQ
The three main categories of this are RM , WIP , and FGs
What is Consumption
ERP is an example of this
Quantity on hand + Open Order Quantity
What is Potential Inventory (PI)
All of these have an origin and stocking site
What are Loops
Goods are produced based on forecasted demand
What is a push system
These are the first units of measure needed for the sizing formula
What are days
The upper and lower limits of this are based on ADD
What is a Category
This reacts to customer orders and limits inventory
What is a pull system
The scale of a loop is determined using this
What is the pull or sizing formula