A Revised and Improved Version of the MRP Algorithm: Rev MRP

Marco D’Avino · Alfredo Bregni · Massimiliano Maria Schiraldi

10 citations0/0 files storedApplied Mechanics and Materials

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Supply Chain and Inventory Management Management and Optimization Techniques Scheduling and Optimization Algorithms

Abstract

This article illustrates an improvement of the traditional MRP algorithm, providing significant benefits in terms of reducing the nervous behavior, better pacing order releases, lowering inventory and concurrently reducing the need for continuous forecast adjustments. The proposed algorithm uses the same set of MRP formulas but refers to a L4L continuous replenishment / production routine, anyway succeeding in releasing batch orders according to EOQ and/or POQ criteria. Simulations have been performed on a three-echelon supply chain in order to test the algorithm effectiveness, either in case of stable but stochastic demand or in case of sudden surges.

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References

1997The Bullwhip Effect In Supply Chains 1 2000Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information 1986A Comparison of Strategies to Dampen Nervousness in MRP Systems 1994Safety Stock versus Safety Time in MRP Controlled Production Systems 1986Forecasting Error Evaluation in Material Requirements Planning (MRP) Production-Inventory Systems 1998Parameters affecting the effectiveness of MRP systems: A review 2002MRP performance effects due to forecast bias and demand uncertainty 1994Nervousness in inventory control: Analytical results

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2013The Sources of Competitive Advantage in University Spin-Offs: a Case Study 2013No news, good news: positive impacts of delayed information in MRP 2013Formulas of Revised MRP

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