| Author : | Xiande Zhao; F. Lai; T. S. Lee |
|---|---|
| Category : | Journal Article |
| Department : | Supply Chain and Information Management |
| Year / Month : | 2001 |
| ISSN: | 0953-7287 (Print), 1366-5871 (Online) |
| Source : | Production Planning and Control, Vol.12, No.8, pp.794-803. |
Abstract
- This paper evaluates alternative methods of establishing the safety stock level taking into consideration of historical measures of forecasting accuracy and the needs for master production scheduling and material requirement planning under a rolling time horizon. A computer model is used to simulate the forecasting, master production scheduling and material planning activities in a company that produces to stock and the production activities are managed by multilevel MRP systems. The simulation output is analysed to evaluate the impact of safety stock methods on MRP system performance. The result of the study shows that using safety stock can help to reduce total cost, schedule instability and improve service level in the MRP systems. Guidelines are developed to help managers select methods to determine safety stock in MRP system operations.
Keywords
Related Publication
- An Evaluation of Forecast Error in Master Production Scheduling for Material Requirements Planning Systems
- Freezing the Master Production Schedule for Material Requirements Planning Systems under Demand Uncertainty
- Freezing the Master Production Schedule in Multilevel Material Requirements Planning Systems Under Deterministic Demand
- Evaluation of safety stock methods in multilevel material requirements planning (MRP) systems
- Software Process Management of Top Companies in Taiwan: a comparative study