SKU Constraint Example
The following examples describe different situations and explain which constraint would get priority and why.
Both Minimum and Maximum Constraints are Defined
Assume the following constraints are defined:
|
SKU Constraint
|
Value
|
Evaluation ROP Result
|
|---|---|---|
|
Maximum ROP (days)
|
30
|
10 units
|
|
Minimum Fill Rate
|
50%
|
15 units
|
What rule is followed? Rule #3 (Maximum and Minimum constraints are defined)
Why? Both a maximum and a minimum constraint are defined
What constraint is given priority? Maximum ROP (days), because 10 units < 15 units
 |
If there were multiple maximum constraints, Rule #2 (Multiple Maximum constraints are defined) would be followed after Rule #3, to determine the smaller of the maximum constraints.
|
Multiple Minimum Constraints are Defined
Assume the following constraints are defined:
|
SKU Constraint
|
Value
|
Evaluation ROP Result
|
|---|---|---|
|
Minimum Safety Stock
|
22
|
25 units
|
|
Minimum ROP
|
21
|
21 units
|
|
Minimum Stock Maximum
|
20
|
19 units
|
What rule is followed? Rule #1 (Multiple Minimum constraints are defined)
Why? Minimum constraints are the only constraints defined
What constraint is given priority? Minimum Safety Stock, because 22 units is the largest value of all of the minimum SKU constraints
See also