The projected on-hand inventory for a time period t is equal to the projected on-hand inventory for the previous time period (t - 1), plus the MPS quantity for period t, minus:
◦ the lesser of the forecast or booked customer order for period (t - 1).
◦ the booked customer orders for period t.
◦ the forecast for time period t.
◦ the greater of the forecast or booked customer orders for period t.