Time-Phased ROP
Commonly referred to as “TPROP” (Time-Phased ROP).
Time-Phased ROP (TPROP) is an Order Policy that places orders over the horizon when projected inventory is expected to fall at or below ROP. Each day in the horizon has an inventory value that is updated by the following:
• Incoming and outgoing orders
• Daily forecast need
• Sales order need
• Incoming good and bad parts from sales returns and return forecast
Enabling the Time-Phased ROP Order Policy is highly recommended due to the numerous advantages over using the Time-Phased Safety Stock Order Policy.
• Time-Phased ROP creates an ordering plan that is consistent with Inventory Optimization, which is ROP-based or ROQ-based. This aides in achieving the planned service performance.
• The parent location is better prepared for future, large quantity orders, which results in improved service. Time-Phased ROP transfers consumption information up the supply chain for EOQ parts as demand happens and also helps smooth procurement orders.
• The processing time is shorter, with no GAP failures or timeouts.
• Procurement and Repair orders based on total network excess are reduced.
• Some features are only available when using Time-Phased ROP, such as:
Enabling Time-Phased ROP is advised when using the Trigger Point Order Policy from top to bottom, as it delivers better results, especially with Schedule Change Suppression and Order Explanation.