Applying Simheuristics for Safety Stock and Planned Lead Time Optimization in a Rolling Horizon MRP System under Uncertainty

Wolfgang Seiringer, Klaus Altendorfer, Juliana Castaneda, Javier Panadero, Angel A. Juan

Research output: Chapter in Book/Report/Conference proceedingsConference contributionpeer-review

1 Citation (Scopus)

Abstract

Material requirements planning (MRP) is one of the main production planning approaches implemented in enterprise resource planning systems, and one that is broadly applied in practice. Since customers' demands evolve over time, the MRP method is usually applied in a rolling horizon planning, in which a safety stock and a planned lead time is usually employed to reduce the negative effects of uncertainty components in the production system or in the customers' demands. Considering uncertainty conditions in a rolling horizon planning leads to additional difficulties in determining the optimal planning parameters. In this paper, a multi-stage and multi-item production system is simulated by considering random customers' demands and other sources of uncertainty. With the goal of minimizing the sum of inventory and backorder costs, a simheuristic algorithm is proposed and tested.

Original languageEnglish
Title of host publication2021 Winter Simulation Conference, WSC 2021
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages1-12
Number of pages12
ISBN (Electronic)9781665433112
DOIs
Publication statusPublished - 2021
Event2021 Winter Simulation Conference, WSC 2021 - Phoenix, United States
Duration: 12 Dec 202115 Dec 2021

Publication series

NameProceedings - Winter Simulation Conference
Volume2021-December
ISSN (Print)0891-7736

Conference

Conference2021 Winter Simulation Conference, WSC 2021
Country/TerritoryUnited States
CityPhoenix
Period12.12.202115.12.2021

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