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

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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