Processing

To arrive at the suggested master schedule quantity, the system first calculates the total demand for the period.  Demand consists of net planned demand, unplanned demand, unconsumed demand, and EDI demand.  These components of total demand are described in greater detail below.  A master schedule quantity is calculated that will meet demand and provide for a desired target inventory.  The quantities then are smoothed over the weeks within the period to produce an even master schedule.  Finally, the schedule quantity is adjusted for order policy rules.

An example illustrating the calculations used in generating the tentative master schedule is included as Exhibit A at the end of this section.