The Planning of Material

Requirements

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Narasimhan, S.L., McLeavey, D.W., Billington, P.J., 1995,
Production Planning and Inventory Control, 2nd Ed.,
Prentice-Hall International, INC., New Jersey.

Industrial Engineering IST AKPRIND YOGYAKARTA

Andrean Emaputra

IE IST AKPRIND 1
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4. Period Order Quantity Approach
((EOQ-based period order quantity (POQ))
• POQ equals the quantity to cover 𝑃∗ periods of net
requirements, dengan

𝑁
𝑃∗ =
𝐷
𝐸𝑂𝑄
N = the number of periods in a year
𝐷 = annual requirements
EOQ = economic order quantity

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4. Period Order Quantity Approach

annual requirements = 27 units 𝑥 52 weeks

= 1404 units/year

𝑁 52
∗
𝑃 = = 1404
𝐷 74
𝐸𝑂𝑄
𝑃∗ =2.74 weeks
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4. Period Order Quantity Approach

• POQ covers a certain number of periods of positive

requirements (gross requirements > 0 )

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5. Least Unit Cost Approach
• The least unit cost (LUC) approach attempts to minimize cost
per unit.

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5. Least Unit Cost Approach

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5. Least Unit Cost Approach

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5. Least Unit Cost Approach

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5. Least Unit Cost Approach

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5. Least Unit Cost Approach

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5. Least Unit Cost Approach

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5. Least Unit Cost Approach

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5. Least Unit Cost Approach

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5. Least Unit Cost Approach

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5. Least Unit Cost Approach

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5. Least Unit Cost Approach

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5. Least Unit Cost Approach

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