<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/cp/onlinemanual/000342" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Example of linear progression</Title>
		<Keyword><Level1>Linear progression</Level1>
		</Keyword>
		<Keyword><Level1>Progression, linear</Level1>
		</Keyword>
	</Header>
	<AimSection><Paragraph>SSA ERP uses the linear progression method to compute the average projected inventory levels. For this method, SSA ERP assumes that the inventory level changes from one <Link href="/baanerp/cp/glossary/glossary#000109" role="glossary">plan period</Link> to the next in a linear fashion.</Paragraph>
	</AimSection>
	<GeneralSection><ExampleSection><SectionTitle>Example</SectionTitle>
			<Paragraph>Inventory on hand = 10</Paragraph>
			<TABLE border="1"><TBODY><TR><TD>Plan period</TD>
						<TD>1</TD>
						<TD>2</TD>
						<TD>3</TD>
					</TR>
					<TR><TD>Length of plan period (days)</TD>
						<TD>2</TD>
						<TD>2</TD>
						<TD>5</TD>
					</TR>
					<TR><TD>Projected inventory level (at end of period)</TD>
						<TD>20</TD>
						<TD>30</TD>
						<TD>99</TD>
					</TR>
				</TBODY>
			</TABLE>
			<Paragraph>In this example, SSA ERP assumes the following projected inventory figures for (the end) of the day:</Paragraph>
			<TABLE border="1"><TBODY><TR><TD>Plan period</TD>
						<TD colspan="2">1</TD>
						<TD colspan="2">2</TD>
						<TD colspan="5">3</TD>
					</TR>
					<TR><TD>Day</TD>
						<TD>1</TD>
						<TD>2</TD>
						<TD>3</TD>
						<TD>4</TD>
						<TD>5</TD>
						<TD>6</TD>
						<TD>7</TD>
						<TD>8</TD>
						<TD>9</TD>
					</TR>
					<TR><TD>Projected inventory</TD>
						<TD>15</TD>
						<TD>20</TD>
						<TD>25</TD>
						<TD>30</TD>
						<TD>43.8</TD>
						<TD>57.6</TD>
						<TD>71.4</TD>
						<TD>85.2</TD>
						<TD>99</TD>
					</TR>
				</TBODY>
			</TABLE>
			<Paragraph>The starting point is the <Link href="/baanerp/wh/glossary/glossary#000330" role="glossary">inventory on hand</Link>, which in this context assumes the role of projected inventory at the beginning of plan period 1 (that is, the plan period in which the current date falls). In this example, the quantity on hand is 10. In two days, this value rises to 20 (the projected inventory at the end of plan period 1). The assumption of linearity implies that the inventory at the end of day 1 lies halfway between 10 and 20.</Paragraph>
			<Paragraph>In plan period 2, the situation is similar.</Paragraph>
			<Paragraph>In plan period 3, there is a rise of 69 in 5 days. In this period, linearity implies that each day a rise of 13.8 is assumed.</Paragraph>
		</ExampleSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000048" role="manual">To compute average projected-inventory levels</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000310" role="manual">Performance indicators in Enterprise Planning</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000343" role="manual">Example of a weighted average of the inventory level</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000344" role="manual">Example of a weighted average of a negative inventory level</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
