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Lot-sizing rules and freezing the master production schedule in material requirements planning systems under demand uncertainty
Authors:X ZHAO  J C GOODALE  T S LEE
Affiliation:1. The Department of Applied Statistics and Operational Research , City University of Hong Kong , Tat Chee Avenue, Kowloon, Hong Kong;2. David Eccles School of Business , University of Utah , Salt Lake City, Utah, 84112, USA;3. David Eccles School of Business , University of Utah and Faculty of Business Administration, Chinese University of Hong Kong , Shatin, Hong Kong
Abstract:Freezing the master production schedule (MPS) is one of the frequently used methods for reducing schedule instability in multilevel material requirements planning (MRP) systems. The selection of the lot-sizing rule is an important decision in MRP systems and has been shown to significantly influence MRP performance. This study examines the interaction between the selection of lot-sizing rules and the selection of MPS freezing parameters under rolling time horizons under different demand uncertainty conditions. The findings of this study enhance the understanding of multilevel MRP performance in a more realistic environment and help MRP practitioners select the proper lot-sizing rule and MPS freezing parameters.
Keywords:
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