Peg distribution - example of gains and losses

Assumptions:

  • The pegs are in the same warehouse.
  • The pegs are for the same item.
  • The peg is a combination of project, element, and activity.
  • The project pegged inventory table is up to date. If not, an update is executed with a loss of one for every step.

The information in the following tables is available in the Project Pegged Inventory (whwmd2560m000) session.

Starting point:

Peg Line Project Element Activity On Hand Inventory Gains Inventory Losses Excess ATT
1 PRO1 ELO1 ACT01 1 1 0 0 0
2       1 0 0 0 0
3 PRO2 ELO2 ACT02 1 0 0 1 0
4 PRO3 ELO3 ACT03 1 0 0 0 1
5 PRO4 ELO4 ACT04 1 0 0 0 1
6 PRO5 ELO5 ACT05 1 0 0 0 0

A loss of one results in the removal of peg line 1 as the first gains are decreased.

Peg Line Project Element Activity On Hand Inventory Gains Inventory Losses Excess ATT
2       1 0 0 0 0
3 PRO2 ELO2 ACT02 1 0 0 1 0
4 PRO3 ELO3 ACT03 1 0 0 0 1
5 PRO4 ELO4 ACT04 1 0 0 0 1
6 PRO5 ELO5 ACT05 1 0 0 0 0

A loss of one results in the removal of peg line 2 as the blank peg is removed.

Peg Line Project Element Activity On Hand Inventory Gains Inventory Losses Excess ATT
3 PRO2 ELO2 ACT02 1 0 0 1 0
4 PRO3 ELO3 ACT03 1 0 0 0 1
5 PRO4 ELO4 ACT04 1 0 0 0 1
6 PRO5 ELO5 ACT05 1 0 0 0 0

Then a loss of one removes the peg line 3 as an excess quantity exists.

Peg Line Project Element Activity On Hand Inventory Gains Inventory Losses Excess ATT
4 PRO3 ELO3 ACT03 1 0 0 0 1
5 PRO4 ELO4 ACT04 1 0 0 0 1
6 PRO5 ELO5 ACT05 1 0 0 0 0

Then a loss of one removes the peg line 4 as it has ATT and it is alphabetically before line 5.

Peg Line Project Element Activity On Hand Inventory Gains Inventory Losses Excess ATT
5 PRO4 ELO4 ACT04 1 0 0 0 1
6 PRO5 ELO5 ACT05 1 0 0 0 0

The next loss removes peg line 5 as it has ATT.

Peg Line Project Element Activity On Hand Inventory Gains Inventory Losses Excess ATT
6 PRO5 ELO5 ACT05 1 0 0 0 0

The last loss removes peg line 6 which is the last scenario of a decreasing peg inventory.