A structured analysis of material requirements planning systems under combined demand and supply uncertainty

Louis Brennan · Surendra M. Gupta

47 citations0/0 files storedInternational Journal of Production Research

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

Abstract

The effects of the presence of both demand and lead time uncertainties on material requirements planning systems performance are investigated. A simulation model of a multi-level product environment is employed to evaluate the influence of these combined uncertainties in a rolling planning horizon. Their interaction with product structure variables, cost ratios and lot-sizing rules is also explored. Finally, by means of statistical analysis of the simulation output, hypotheses relating to various variables and their interactions are formed and tested. The results highlight the significant differences between uncertain and deterministic environments.

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References

1990Introduction to Simulation Using Siman 1987Kanban, MRP, and Shaping the Manufacturing Environment 1976MATERIAL REQUIREMENTS PLANNING UNDER UNCERTAINTY 1988Determining Safety Stock in the Presence of Stochastic Lead Time and Demand 1982Improved Heuristics for Multi-Stage Requirements Planning Systems 1986A Comparison of Strategies to Dampen Nervousness in MRP Systems 1986Forecasting Error Evaluation in Material Requirements Planning (MRP) Production-Inventory Systems 1983COST INCREASES DUE TO DEMAND UNCERTAINTY IN MRP LOT SIZING

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