HEURISTIC LOT‐SIZING APPROACHES FOR DEALING WITH MRP SYSTEM NERVOUSNESS

Dean H. Kropp · James V. Jucker

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

Abstract

ABSTRACT We develop and test ways for modifying the Silver‐Meal and part‐period‐balancing lot‐sizing procedures to include the costs of schedule changes in response to changes in demand estimates. These modifications tend to reduce MRP system nervousness. We compare the performance of these approaches with the modified Wagner‐Whitin algorithm, which we have shown is optimal for static conditions. We find that the modified SilverMeal approach is only slightly more costly than the modified Wagner‐Whitin technique and that the modified part‐period‐balancing approach performs both poorly and erratically.

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References

1958Dynamic Version of the Economic Lot Size Model 2004Dynamic Version of the Economic Lot Size Model 1980HEURISTIC LOT‐SIZING PERFORMANCE IN A ROLLING‐SCHEDULE ENVIRONMENT*1978An Algorithm for the Dynamic Lot-Size Problem with Time-Varying Production Capacity Constraints

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