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Safety Stocks in MRP—Systems with Emergency Setups for Components

Safety Stocks in MRP—Systems with Emergency Setups for Components Material Requirements Planning or Manufacturing Resource Planning (MRP) systems originally were designed for a deterministic environment. Often, however, demand for finished products is uncertain and some type of buffering mechanism is necessary to provide desired levels of service. When the schedule is replanned each period, as typically is done, variability of demand may manifest itself in the form of early or “emergency” production runs. Safety stock may serve to avert some or most of these emergency production runs. We have developed a heuristic algorithm which is shown to provide extremely good guidelines for setting safety stock levels. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Science INFORMS

Safety Stocks in MRP—Systems with Emergency Setups for Components

Management Science , Volume 32 (4): 10 – Apr 1, 1986
11 pages

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Publisher
INFORMS
Copyright
Copyright © INFORMS
Subject
Research Article
ISSN
0025-1909
eISSN
1526-5501
DOI
10.1287/mnsc.32.4.403
Publisher site
See Article on Publisher Site

Abstract

Material Requirements Planning or Manufacturing Resource Planning (MRP) systems originally were designed for a deterministic environment. Often, however, demand for finished products is uncertain and some type of buffering mechanism is necessary to provide desired levels of service. When the schedule is replanned each period, as typically is done, variability of demand may manifest itself in the form of early or “emergency” production runs. Safety stock may serve to avert some or most of these emergency production runs. We have developed a heuristic algorithm which is shown to provide extremely good guidelines for setting safety stock levels.

Journal

Management ScienceINFORMS

Published: Apr 1, 1986

Keywords: Keywords : inventory/production ; multi-echelon

There are no references for this article.