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ROP Optimisation

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Cycle-Based-Scheduling
Schedule Optimisation


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Sequoia can help you implement the right mix of scheduling approaches, to create a stable, asset sweating production environment that routinely hits your stock service policy.

Re-Order-Point (ROP)
The default scheduling approach for the assembly industry.


ROP scheduling arose from the assembly industry where stock costs are relatively high. As most MRP systems and scheduling textbooks also arose from the assembly industry, you will find that they always assume ROP to be the default scheduling approach.

Pure ROP requires you to be able to make any product at any point in time which is practically impossible in the FMCG industry. A close approximation would be a rolling daily scheduling process with stock levels reviewed on a daily basis and production planned in daily buckets. Most FMCG businesses that claim to be operating a ROP system are in fact operating a weekly bucketed ROP system.

By using a ROP approach you will have a larger variability in the utilisation of the line, and therefore require more spare capacity than a cycle-based-scheduling approach.

To make ROP work effectively, you should periodically (every couple of years) re-calculate the minimum stock level that will trigger a new make and your EBQ on a SKU by SKU basis. ...more
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