This paper develops an approximate model for simultaneously determining reorder intervals and planned lead times for MRP systems. Unlike previous research, this model explicitly considers commonality, non-instantaneous production, multiple work centres (with multiple machines and with limited capacity), and queue inventory carrying cost. Four heuristic solution procedures for the non-linear integer optimization problem are proposed and compared with an exact branch-and-bound algorithm on a set of forty test problems. The results suggest that two of the heuristics are both effective and efficient.
- Materials requirements planning
- Multi-echelon production-inventory systems