A simulation method for Material requirement planning supply dependent demand and uncertainty lead-time

Materials requirements planning (MRP) is a widely used method for production planning and scheduling. Planned lead-time (PLT) and lot size are two of the input parameters for MRP systems, which determine planned order release dates. In this paper deals with material requirement planning for a three levels production and assembly system with several types of components and one type of final product, in multi periods. In this paper, we assume that components lead-times are probabilistic. A MRP approach with periodic order quantity (POQ) policy is used for the planning of components. The objective is minimizing the sum of the all components holding cost, final product backlogging cost, final product holding cost and setup costs. The main policies in this model determine the periodic order quantity, and planned lead-times. Monte-Carlo simulation is used to generate numerous scenarios based on the components lead time, and by using Monte-Carlo simulation we can find the suitable solution for this problem.   Keywords: planned lead-time; periodic order quantity; uncertainty, Monte-Carlo simulation; Probabilistic lead-time

[1]  Alexandre Dolgui,et al.  Genetic algorithm for supply planning in two-level assembly systems with random lead times , 2009, Eng. Appl. Artif. Intell..

[2]  Daniel Sipper,et al.  Production: Planning, Control and Integration , 1997 .

[3]  Paul H. Zipkin,et al.  Foundations of Inventory Management , 2000 .

[4]  J. Proth,et al.  Supply Chain Engineering : Useful Methods and Techniques , 2009 .

[5]  R. W. Grubbström,et al.  The detailed coordination problem in a two-level assembly system with stochastic lead times , 2003 .

[6]  Alexandre Dolgui,et al.  Optimal MRP offsetting for assembly systems with stochastic lead times: POQ policy and service level constraint , 2011, Journal of Intelligent Manufacturing.

[7]  Alexandre Dolgui,et al.  The MPS parameterization under lead time uncertainty , 2004 .

[8]  Candace Aral Yano,et al.  Stochastic Leadtimes in Two-Level Assembly Systems , 1987 .

[9]  Susana Relvas,et al.  Alexandre Dolgui and Jean-Marie Proth, Supply Chain Engineering - Useful Methods and Techniques , Springer-Verlag (2010) 541 pp., ISBN: 978-1-84996-016-8 , 2010, Eur. J. Oper. Res..

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

[11]  Stephen C. Graves,et al.  Uncertainty and Production Planning , 2011 .

[12]  Alexandre Dolgui,et al.  Supply planning for single-level assembly system with stochastic component delivery times and service level constraint , 2008 .

[13]  Alexandre Dolgui,et al.  Optimal MRP parameters for a single item inventory with random replenishment lead time, POQ policy and service level constraint , 2013 .

[14]  Reha Uzsoy,et al.  Planning Production and Inventories in the Extended Enterprise , 2011 .

[15]  Ahmad Makui,et al.  Determining the periodicity and planned lead time in serial-production systems with dependent demand and uncertain lead time , 2013 .

[16]  Alexandre Dolgui,et al.  Supply planning under uncertainties in MRP environments: A state of the art , 2007, Annu. Rev. Control..

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

[18]  Sven Axsäter.  Planning order releases for an assembly system with random operation times , 2005, OR Spectr..

[19]  Jafar Heydari,et al.  Supply chain coordination for the joint determination of order quantity and reorder point using credit option , 2010, Eur. J. Oper. Res..

[20]  Alexandre Dolgui,et al.  Optimal time phasing and periodicity for MRP with POQ policy , 2011 .

[21]  Xiaolan Xie,et al.  Supply management in assembly systems , 1993 .

[22]  D. J. Bragg.  The effects of partial order release and component reservation on inventory and customer service performance in an MRP environment , 1999 .