Calculate Buffer Zones

Explanation

This activity is used to calculate buffer zones based on the unprotected lead time, lead time category and variability category. Further minimum lot size and imposed order cycle will also be considered. As a result of performing this job, Green Zone, Yellow Zone and Red zone will be established for parts with Auto Update buffer levels allowed.

After this process is executed Buffer Zones will be determined as below. If any Adjustments are applicable then they will also affect the buffer zone calculations as well.

Green Zone will be established based on the maximum of the following equations:

• Imposed Order Cycle * Operational Average Daily Usage
• Minimum Order Lot Size Qty
• Average Daily Usage * Unprotected Lead Time * Green Lead Time factor

Yellow Zone will be established by calculating:

• Average Daily Usage * Unprotected Lead Time

Red Zone will be calculated as the sum of Red Base and Red Safety, which is calculated as below:

• Red Base = Operational Average Daily Usage * Unprotected Lead Time * Red Lead Time factor
• Red Safety = Variability Factor * Red Base

Prerequisites

• Part should be defined as buffered part.
• Unprotected lead times for both the purchased and manufactured parts must have been calculated.
• Lead Time Category and Variability Category should be assigned to part.
• If required, Minimum Order Qty and Imposed Order Cycle should be specified.

System Effects

• After this process is executed Green Zone, Red Zone and Yellow Zone are established.

Window

Calculate Buffer Zones
Buffer Parts Attributes

Related Window Descriptions

Calculate Buffer Zones
Buffer Parts Attributes

Procedure

From the Calculate Buffer Zones window:

1. In the Site field, enter the site for which you want to calculate buffer zones. Click List to select from the available sites. If you leave the field blank, the buffer zone calculation process will run for all the sites to which you have access.
2. Click OK.

From the Buffer Parts Attributes window:

1. Search for the part for which you want to calculate buffer zones.
2. Right-click and select Calculate Buffer Zones.

To schedule the task as a background job:

1. Click Schedule to open the New Database Task Schedule window. Set the required scheduling parameters and save. Scheduled tasks can be seen in the Scheduled Database Tasks window.