Title: Proposing a model for optimising planned lead-times and periodicity in MRP systems under uncertainty

Authors: Haibatolah Sadeghi; Ahmad Makui; Mehdi Heydari; Amir Hossein Ghapanchi

Addresses: Industrial Engineering Department, Iran University of Science and Technology, P.O. Box 1684613114, Tehran, Iran ' Industrial Engineering Department, Iran University of Science and Technology, P.O. Box 1684613114, Tehran, Iran ' Industrial Engineering Department, Iran University of Science and Technology, P.O. Box 1684613114, Tehran, Iran ' School of Information and Communication Technology, Griffith University, Queensland, Australia

Abstract: This paper deals with material requirement planning (MRP) for a two levels production and assembly system with several types of items and one type of product, in multi periods. In this paper, we assume that items lead-times are probabilistic. An MRP approach with periodic order quantity (POQ) policy is used for the planning of items. The objective is to minimise the sum of total holding cost for all items, final product holding cost, final product backlogging and setup costs. The main policies in this model determine the periodic order quantity, order quantity and planned lead-times. The method to the mathematical model developed can be used for the optimisation of planned lead-times and periodicity for MRP systems under uncertain lead-time.

Keywords: planned lead times; periodic order quantity; POQ; uncertainty; probabilistic lead times; modelling; optimisation; periodicity; MRP systems; material requirements planning; holding cost; backlogging; setup costs; mathematical modelling.

DOI: 10.1504/IJSOM.2015.069649

International Journal of Services and Operations Management, 2015 Vol.21 No.3, pp.310 - 331

Received: 12 Feb 2014
Accepted: 27 Feb 2014

Published online: 29 May 2015 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article