Evaluating lot-sizing methods in multilevel inventory systems by simulation

This article documents the results of a large simulation evaluating the effectiveness of MRP lot-sizing heuristics. The performance of each rule was simulated over different sets of product structures and market requirements patterns over a variety of planning horizons. Some runs were made with data from a job-shop manufacturing facility. Results suggest that just-in-time lot-sizing strategies can be significantly more costly than other lot-sizing methods.