Material requirements planning performance effects due to lot size and planned lead time settings

The effects of lot size and planned lead time settings are evaluated in a shop producing assembled products with common components. Material requirements planning (MRP) logic is used for production planning. A framework for the analysis of delays within the production system is presented. These delays are evaluated using spreadsheet-based MRP software linked to a simulation package that emulates shopfloor activity. Results show that by selectig the proper lot sizes and then using the planned leadtimes to control delivery performance, the required inventory levels can be minimized.