<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/cp/onlinemanual/000446" xml:lang="en">
   <Header>
      <Title>Example: to calculate the optimized order parameters</Title>
      <Keyword type="header" order="d1e215145">
         <Level1>Optimized order parameters</Level1>
      </Keyword>
      <Keyword type="header" order="d1e215148">
         <Level1>Parameters</Level1>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>Calculating the optimized order parameters is one of the steps
	  that ERP Enterprise performs in the
	  optimization algorithm for logistic parameters in the <GUIRef href="/baanerp/cp/rao" role="module">Resource Analysis and Optimization</GUIRef> module in <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef>. The optimized order parameters
	  consist of the optimized <Link href="/baanerp/ti/glossary/glossary#OrderInterv_ti" role="glossary">order interval</Link> (in days) and the optimized lot size.</Paragraph>
   </AimSection>
   <GeneralSection>
      <SectionTitle>Optimized order interval</SectionTitle>
      <Paragraph>The formula that ERP Enterprise uses to calculate the optimized order
	  interval is the following:</Paragraph>
      <Formula space-and-orientation="indented-estimated">
         <Paragraph>OI = L/F</Paragraph>
      </Formula>
      <Paragraph>Where:</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="3">
            <TR no="1" isLast="false">
               <TD rowspan="1" colspan="1">OI</TD>
               <TD rowspan="1" colspan="1">Order interval (days)</TD>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">L</TD>
               <TD rowspan="1" colspan="1">Optimized time period (days)</TD>
            </TR>
            <TR no="3" isLast="true">
               <TD rowspan="1" colspan="1">F</TD>
               <TD rowspan="1" colspan="1">Number of times an item is produced in the optimized time
			period</TD>
            </TR>
         </TBODY>
      </TABLE>
   </GeneralSection>
   <ExampleSection>
      <SectionTitle>Example</SectionTitle>
      <Paragraph>Suppose that we have the following data:</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="2">
            <TR no="1" isLast="false">
               <TD rowspan="1" colspan="1">L:</TD>
               <TD rowspan="1" colspan="1">60 days</TD>
            </TR>
            <TR no="2" isLast="true">
               <TD rowspan="1" colspan="1">F:</TD>
               <TD rowspan="1" colspan="1">20</TD>
            </TR>
         </TBODY>
      </TABLE>
      <Paragraph>The calculation of the optimized order interval is
	  then:</Paragraph>
      <Formula space-and-orientation="indented-estimated">
         <Paragraph>OI = L/F = 60/20 = 3</Paragraph>
      </Formula>
      <Paragraph>This means that the optimized order interval is 3
	  days.</Paragraph>
   </ExampleSection>
   <GeneralSection>
      <SectionTitle>Optimized lot size</SectionTitle>
      <Paragraph>The formula that ERP Enterprise uses to calculate the optimized lot size is
	  the following:</Paragraph>
      <Formula space-and-orientation="indented-estimated">
         <Paragraph>LS = D/F</Paragraph>
      </Formula>
      <Paragraph>Where:</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="3">
            <TR no="1" isLast="false">
               <TD rowspan="1" colspan="1">LS</TD>
               <TD rowspan="1" colspan="1">Lot size</TD>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">D</TD>
               <TD rowspan="1" colspan="1">Total demand in the optimized period</TD>
            </TR>
            <TR no="3" isLast="true">
               <TD rowspan="1" colspan="1">F</TD>
               <TD rowspan="1" colspan="1">Number of times an item is produced in the optimized period</TD>
            </TR>
         </TBODY>
      </TABLE>
   </GeneralSection>
   <ExampleSection>
      <SectionTitle>Example</SectionTitle>
      <Paragraph>Suppose that we have the following data:</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="2">
            <TR no="1" isLast="false">
               <TD rowspan="1" colspan="1">D:</TD>
               <TD rowspan="1" colspan="1">600 pieces</TD>
            </TR>
            <TR no="2" isLast="true">
               <TD rowspan="1" colspan="1">F:</TD>
               <TD rowspan="1" colspan="1">20</TD>
            </TR>
         </TBODY>
      </TABLE>
      <Paragraph>The calculation of the optimized lot size is then:</Paragraph>
      <Formula space-and-orientation="indented-estimated">
         <Paragraph>LS = D/F = 600/20 = 30</Paragraph>
      </Formula>
      <Paragraph>This means that the optimized lot size is 30 pieces</Paragraph>
   </ExampleSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000131" role="manual">Optimization algorithm for logistic parameters</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>