Planned lead times in multistage systems

Planned lead times in multistage systems

0.00 Avg rating0 Votes
Article ID: iaor20012271
Country: United States
Volume: 29
Issue: 1
Start Page Number: 163
End Page Number: 191
Publication Date: Dec 1998
Journal: Decision Sciences
Authors: ,
Abstract:

This study investigates the impact of planned lead times on performance in multistage manufacturing where material requirements planning is used in a make-to-stock environment. We simulate a variety of different operating environments and find: (1) planned lead times are important to customer service levels under all operating environments examined, but have a smaller impact on inventory investment; (2) tight due dates introduced by short planned lead times hurt customer service without saving much inventory; (3) small increases to tight planned lead times improve customer service substantially with small inventory increases; (4) co-component inventories change with planned lead times, and disparity between such inventories is a sign of poor timing coordination; (5) the fixed order quantity rule performs better than the periodic order quantity rule; and (6) tall product structure and large lot sizes require particular attention to planned lead times. The findings also extend the current understanding of planned lead times by including uncertainties such as forecast error, yield loss, and equipment reliability. The study concludes with a way to diagnose and improve poorly set planned lead times.

Reviews

Required fields are marked *. Your email address will not be published.