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Optimal MRP offsetting for assembly systems with stochastic lead times: POQ policy and service level constraint

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Abstract

This study deals with component supply planning in assembly systems, i.e. where several types of components are needed to produce one finished product. The actual component lead times have random deviations, so they can be considered as random variables. MRP approach with Periodic Order Quantity policy is considered. The aim is to find the optimal MRP offsetting. The proposed model and algorithms minimize the sum of the setup and average holding costs for the components, while satisfying a desired service level.

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Authors and Affiliations

  1. FARCAMT, Industrial Engineering Department, College of Engineering, King Saud University, P.O. Box 800, Riyadh, 11421, Kingdom of Saudi Arabia

    Mohamed-Aly Louly & Abdulrahman Al-Ahmari

  2. Centre for Industrial Engineering and Computer Science, Ecole des Mines de Saint-Etienne, 158 cours Fauriel, 42023, Saint-Etienne Cedex 2, France

    Alexandre Dolgui

Authors
  1. Mohamed-Aly Louly
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  2. Alexandre Dolgui
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  3. Abdulrahman Al-Ahmari
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Correspondence to Alexandre Dolgui.

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Louly, MA., Dolgui, A. & Al-Ahmari, A. Optimal MRP offsetting for assembly systems with stochastic lead times: POQ policy and service level constraint. J Intell Manuf 23, 2485–2495 (2012). https://doi.org/10.1007/s10845-011-0515-7

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  • DOI: https://doi.org/10.1007/s10845-011-0515-7

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