Impact of lot-sizing on the financial performance of dispatching techniques in an MRP-planned fabrication and assembly environment

By simulation analysis of a hypothetical MRP-controlled fabrication and assembly shop, the financial performance of six dispatching techniques are compared under four lot-sizing techniques, two levels of demand, and two levels of nervousness. For each lot-sizing technique under low nervousness and low demand the choice of dispatching technique did not substantially affect financial performance. The choice of lot-sizing technique was much more critical. Under increased nervousness, period order quantity and least total cost generated enough setups to deplete excess capacity at the most heavily loaded workcentre. The choice of dispatching technique became critical.