Business Basics Home Page Who is Bill Gaw? And why should we listen to him?	Inventory Control and Backflushing Part 2 of 3 Part 1    Part 2    Part 3  Bulk Issue Listing Some systems provide a special listing for the stores to issue the floor stock items against. When the MRP run is performed, it looks at the current requirements for a floorstock item, for jobs currently in WIP, and then adds to that the following periods requirement. Typically this would be for the next week. This total requirement is then compared to the floor stock balance. If the requirement is less than the current balance it does nothing. Should the requirement be greater, it adds the item to the "Bulk Issue Listing." It shows the the total requirement, the current balance and the shortfall. This document can then be used as a requisition, with the stores issuing a convenient quantity equal to, or greater than, the shortfall requirement.
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	Logic Example To clarify how this logic works I will use as an example a wire which is purchased in 100 foot rolls. The wire is used on an assembly, with a quantity per of 1 foot. WEEK 1 • There are no assemblies in WIP, but the following weeks requirement is 34 feet of wire. Thus the total requirement for wire is 34 feet. • The floor stock balance is zero. • The Bulk Issue Listing shows a shortfall of 34 feet. • The stores issue one 100 foot roll of wire to the shops and the transfer transaction updates the stores bal­ance to 400 feet of wire and the floor stock balance now shows 100 feet.• No work is completed during the week. WEEK 2 • The MRP run is performed and the WIP requirement is now 34 feet of wire, and the requirement for the following week is 41 feet of wire. This makes a total requirement of 75 feet of wire. As this is less than the floor stock balance, no action is taken. • During the week, 20 of the assemblies are completed and sent to stores. The receipt transaction causes the items defined as floor stock items to be backflushed. This results in the floor stock balance being reduced to 80 feet and the requirement being reduced to 55 feet. WEEK 3 • The MRP run is performed and the WIP requirement is 55 feet of wire, and the following weeks requirement is 80 feet. The total requirement is therefore 135 feet. • As the floor stock balance is only 80 feet, it creates a shortfall of 55 feet. • The Bulk Issue Listing now shows a requirement of 55 feet and the stores issue to the shops a 100 foot roll. The transaction transfers 100 feet from the stores balance to the floor stock balance. The stores balance is now 300 feet and the floor stock baalance is 180 feet. • During this week 10 of the assemblies are completed and sent to stock. • The receipt transaction causes the floor stock balance to be reduced to 170 feet and the requirements to 125 feet. • This logic is repeated each week. Part 1    Part 2    Part 3     Increase Your Knowledge... Stay Connected Join our 15,000 plus MBBP Bulletin Subscribers To stay current on Lean Manufacturing principles and techniques, subscribe to our Manufacturing Basics and Best Practices Bulletin (MBBP) and we'll send you our 10-PowerPoint-Plus, Lean Manufacturing, Mini-Modules. (All at no cost of course.)   Your personal information will never be disclosed to any third party. First Name: Your E-Mail: Here's what one of our 13,000 plus subscribers wrote about the MBBP Newsletter: "Great manufacturing articles. Thanks for the insights. I often share portions of your articles with my staff and they too enjoy them and fine aspects where they can integrate points into their individual areas of responsibilities. Thanks again."                Kerry B. Stephenson. President. KALCO Lighting, LLC "Back to Basics" Training for anyone ... anywhere ... anytime Business Basics, LLC 6003 Dassia Way, Oceanside, CA 92056 West Coast: 760-945-5596  © 2001-2013 Business Basics, LLC