A review of techniques for buffering against uncertainty with MRP systems

Material requirements planning (MRP) is regarded as one of the most widely used systems for production planning and control in industry. In theory, the logic of MRP would preclude the use of buffering. In reality, uncertainty exists in the production system in various stages. Buffering is a primary means of protecting against degradation of performance due to the uncertainty. In this paper we review the literature for techniques and methodologies suggested to deal with the uncertainty. It is noted that no integrated or general methodologies exist to deal with this problem and several gaps still exist in approaches to deal with the uncertainty. Another shortcoming of previous work has been the limited amount of realism in the models and approaches as is the failure to account for the interactions between MRP and other areas of the planning and control system. Further research in this area is called for.

[1]  D. N. P. Murthy,et al.  MRP with uncertainty: a review and some extensions , 1991 .

[2]  H. C. Meal.  Safety Stocks in MRP Systems. , 1979 .

[3]  Surendra M. Gupta,et al.  A structured analysis of material requirements planning systems under combined demand and supply uncertainty , 1993 .

[4]  Jc Johan Wortmann,et al.  MRP and inventories , 1985 .

[5]  Victor Weinberg,et al.  Structured Analysis , 1978 .

[6]  K. R. Baker,et al.  The dynamics of hedging the master schedule , 1986 .

[7]  Eisenhower C. Etienne.  Choosing optimal buffering strategies for dealing with uncertainty in MRP , 1987 .

[8]  Jack C. Hayya,et al.  Buffering decisions under MRP environment: A review , 1988 .

[9]  Colin New,et al.  MRP with high uncertain yield losses , 1984 .

[10]  Stephen C. Graves,et al.  Safety stocks in manufacturing systems , 1987 .

[11]  Thomas G. Schmitt.  Resolving uncertainty in manufacturing systems , 1984 .

[12]  Eisenhower C. Etienne,et al.  A simple and robust model for computing the service level impact of lot sizes in continuous and lumpy demand contexts , 1987 .

[13]  B. W. Taylor,et al.  A simulation-based experimental investigation of supply/timing uncertainty in MRP systems , 1984 .

[14]  V. Sridharan,et al.  The impact of safety stock on schedule instability, cost and service , 1989 .

[15]  Candace Arai Yano,et al.  Safety Stocks in MRP-Systems with Emergency Setups for Components , 1986 .

[16]  Surendra M. Gupta,et al.  MRP systems under supply and process uncertainty in an integrated shop floor control , 1995 .

[17]  Carolina Chang,et al.  The interchangeability of safety stocks and safety lead time , 1985 .

[18]  D. Clay Whybark,et al.  MATERIAL REQUIREMENTS PLANNING UNDER UNCERTAINTY , 1976 .

[19]  A. G. Lagodimos,et al.  Optimal positioning of safety stocks in MRP , 1993 .

[20]  Larry P. Ritzman,et al.  Planned Lead Times in Multistage Systems , 1998 .

[21]  Gabriel R. Bitran,et al.  Hierarchical production planning , 1989 .

[22]  Hon-Shiang Lau,et al.  Evaluating the impact of lead time uncertainty in material requirements planning systems , 1994 .

[23]  A. Molinder,et al.  Joint optimization of lot-sizes, safety stocks and safety lead times in an MRP system , 1997 .

[24]  J. Wacker.  A theory of material requirements planning (MRP): an empirical methodology to reduce uncertainty in MRP systems , 1985 .

[25]  Candace Arai Yano,et al.  Interaction between frequency of rescheduling and the role of safety stock in material requirements planning systems , 1987 .