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.
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.
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.
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
During this week 10 of the assemblies are completed and sent to
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.