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Expert Answer

Formulas:

Projected on-hand (POH) at the end of period = on-hand at thebeginning of period + Planned order receipt (PORc) of week – GrossRequirement of week

on-hand at the beginning of period = on-hand at the end ofprevious period

Net requirement = Gross requirement – on-hand at the beginningof period

Planned order receipt (PORc) = if the on-hand at the end ofperiod is negative, place an order as per lot size

Planned order release (PORe) = time phase the PORc quantity bylead time

Lot size = Fixed order quantity of 100 units