Interaction effects on MRP nervousness

Abstract

SUMMARY Relative performance of decision rules for specific production and inventory control problems has gained attention in the last two decades. One of these areas receiving attention is MRP nervousness. Generally, the issue of MRP nervousness has been examined under highly simplified environments for single decision rule effects. Implications of the results of these previous studies may be misleading in light of interaction effects with different decision rules. Conclusions drawn may not be appropriate when interactions of decision rules are considered under more realistic environments. Statistical interactions have been found and reported (Minifie and Heard 19S5). This paper addresses the managerial implications of these statistical findings and highlights the importance of various features that should be present in simulated MRP environments.

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