Lot Expiration Examples
This topic shows examples of how MRP Planning uses lot expiration
dates.
Example 1 - Expired Lots and Expiring Lots Not Fully Allocated
Item 100 has a shelf life of 30 days and an order minimum/multiple of 10.
Existing Lots
| Lot | Quantity on Hand | Expiration Date |
|---|---|---|
| A | 10 | April 30 |
| B | 10 | June 30 |
Demand
| Ref | Quantity | Due Date |
|---|---|---|
| CO-1 | 5 | June 15 |
| CO-2 | 2 | July 15 |
| CO-3 | 3 | October 1 |
Given a current date of June 1, this table illustrates how expired and expiring lots affect order planning.
| Date | Receipt Quantity | Requirement Quantity | Projected On Hand | Comment |
|---|---|---|---|---|
| Balance on Hand | 10 | Lot A is excluded from balance on hand because it has already expired | ||
| June 15 | 0 | 5 | 5 | Demand for CO-1 consumes 5 |
| June 30 | 0 | 5 | 0 | Remainder of Lot B expires, leaving 0 on hand |
| July 15 | 10 | 0 | 10 | PLN-1 created (Exp. Date = July15 + 30 days) |
| July 15 | 0 | 2 | 8 | Demand for CO-2 consumes 2 |
| August 14 | 0 | 8 | 0 | Remainder of PLN-1 lot expires before being consumed |
| October 1 | 10 | 0 | 10 | PLN-2 created |
| October 1 | 0 | 3 | 7 | Demand for CO-3 consumes 3 |
| October 30 | 0 | 7 | 0 | Remainder of PLN-2 lot expires |
Example 2 - Fully Allocated Lots
Item 100 has a shelf life of 30 days, and an order minimum/multiple of 10.
Existing Lots
| Lot | Quantity on Hand | Expiration Date |
|---|---|---|
| A | 10 | June 30 |
| B | 10 | July 30 |
Demand
| Ref | Quantity | Due Date |
|---|---|---|
| CO-1 | 12 | June 15 |
| CO-2 | 5 | July 15 |
| CO-3 | 3 | October 1 |
Given a current date of June 1, this table illustrates how expired and expiring lots affect order planning.
| Date | Receipt Quantity | Requirement Quantity | Projected On Hand | Comment |
|---|---|---|---|---|
| Balance on Hand | 20 | |||
| June 15 | 0 | 12 | 8 | Demand for CO-1 consumes 12 (lot A completely consumed) |
| July 15 | 0 | 5 | 3 | Demand CO-2 consumes 5 |
| July 30 | 0 | 3 | 0 | Remainder of lot B expires |
| October 1 | 10 | 0 | 20 | PLN-1 created |
| October 1 | 0 | 3 | 7 | Demand CO-3 consumes 3 |
| October 30 | 0 | 7 | 0 | Remainder of PLN-1 lot expires |
Example 3 - Using Shelf Life to Plan Scheduled Receipts
Item 100 has a shelf life of 30 days, and an order minimum/multiple of 10.
Existing Lots
| Lot | Quantity on Hand | Expiration Date |
|---|---|---|
| A | 10 | June 30 |
| B | 10 | July 30 |
Demand
| Ref | Quantity | Due Date |
|---|---|---|
| CO-1 | 12 | June 15 |
| CO-2 | 5 | July15 |
| CO-3 | 3 | October 1 |
Scheduled Receipts
| Ref | Quantity | Due Date |
|---|---|---|
| PO-1 | 10 | September 30 |
Given a current date of June 1, this table illustrates how expired and expiring lots affect order planning.
| Date | Receipt Quantity | Requirement Quantity | Projected On Hand | Comment |
|---|---|---|---|---|
| Balance on Hand | 20 | |||
| June 15 | 0 | 12 | 8 | Demand for CO-1 consumes 12 (lot A completely consumed) |
| July 15 | 0 | 5 | 3 | Demand CO-2 consumes 5 |
| July 30 | 0 | 3 | 0 | Remainder of lot B expires |
| September 30 | 10 | 0 | 10 | Scheduled receipt of PO-1 |
| October 1 | 0 | 3 | 7 | Demand CO-3 consumes 3 |
| October 30 | 0 | 7 | 0 | Remainder of PLN-1 lot expires |