Comparing Dynamic Risk-Based Scheduling Methods with MRP via Simulation

Author(s)

Li Sun, University of Louisville
Sunderesh S. Heragu, University of Louisville
Lijian Chen, University of DaytonFollow
Mark L. Spearman, Factory Physics

Document Type

Article

Publication Date

2012

Publication Source

International Journal of Production Research

Abstract

It is well known that material requirements planning (MRP) is a deterministic planning tool which heavily relies on accurate demand forecast, and that its performance under perturbed, constantly changing environment becomes questionable. Although many companies still use basic MRP as a planning tool, there are other alternative tools available. For example, Factory Physics Inc. has developed a tool called dynamic risk-based scheduling (DRS), which creates a set of policy parameters (e.g. work in process (WIP) level, lot sizes, re-order point, and re-order quantity) that work for a range of situations. The main objective of this paper is to compare DRS and MRP scheduling systems for single-machine and multi-machine systems via simulation. Their performance measures are compared for various systems assuming three levels of demand uncertainty. The simulation results suggest that DRS outperforms MRP in terms of robustness, fill rate and inventory level.

Inclusive pages

921-937

ISBN/ISSN

0020-7543

Comments

Permission documentation is on file.

Copyright

Copyright © 2012, Taylor & Francis

Publisher

Taylor & Francis

Volume

50

Issue

4

Peer Reviewed

yes

eCommons Citation

Sun, Li; Heragu, Sunderesh S.; Chen, Lijian; and Spearman, Mark L., "Comparing Dynamic Risk-Based Scheduling Methods with MRP via Simulation" (2012). MIS/OM/DS Faculty Publications. 22.
https://ecommons.udayton.edu/mis_fac_pub/22