PART-PERIOD BALANCING (PPB)

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PPB is a dynamic lot-sizing technique which computes the production lot size after considering the next or the previous period's demands to determine if it would be economical to include them in the current lot.

Thus, the part period balancing (PPB) procedure uses more information in the requirements schedule than other procedures. The PPB procedure allows both lot size and time between orders to vary. For example, smaller lot sizes and longer time intervals between orders are used in periods of low demand to reduce inventory costs.

See Inventory floor analysis; MRP; Order release; Safety stocks: Luxury or necessity; Schedule stability; Setup reduction.