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actual approach assembled product assembly average backlogs better bill of material branch warehouse calculated capacity planning capacity requirements plan components computer systems control system critical ratio customer orders customer service demand items dependent demand dispatch list due dates economic order quantity example expediting exponential smoothing factory Figure finite loading forecast error foreman formal priority planning formal system function going increase informal system input input/output control inventory control inventory investment inventory management system inventory records lead lot sizes manufacturing company master schedule material requirements planning mean absolute deviation ment MRP system operations order point system ordering cost output percent phased order point planned order release planner practice priority control priority planning system problems production and inventory production control production plan purchasing recognize reschedule responsibility result safety stock scheduled receipt set-up simply stockout stockroom subassemblies technique tend typical usually week