Applying Simheuristics to Minimize Overall Costs of an MRP Planned Production System.

Looking at current enterprise resource planning systems shows that material requirements planning (MRP) is one of the main production planning approaches implemented there. The MRP planning parameters lot size, safety stock, and planned lead time, have to be identified for each MRP planned material. With increasing production system complexity, more planning parameters have to be defined. Simulation-based optimization is known as a valuable tool for optimizing these MRP planning parameters for the underlying production system. In this article, a fast and easy-to-apply simheuristic was developed with the objective to minimize overall costs. The simheuristic sets the planning parameters lot size, safety stock, and planned lead time for the simulated stochastic production systems. The developed simheuristic applies aspects of simulation annealing (SA) for an efficient metaheuristic-based solution parameter sampling. Additionally, an intelligent simulation budget management (SBM) concept is introduced, which skips replications of not promising iterations. A comprehensive simulation study for a multi-item and multi-staged production system structure is conducted to evaluate its performance. Different simheuristic combinations and parameters are tested, with the result that the combination of SA and SBM led to the lowest overall costs. The contributions of this article are an easy implementable simheuristic for MRP parameter optimization and a promising concept to intelligently manage simulation budget.

Periodical capacity setting methods for make-to-order multi-machine production systems.

The paper presents different periodical capacity setting methods for make-to-order, multi-machine production systems with stochastic customer required lead times and stochastic processing times to improve service level and tardiness. These methods are developed as decision support when capacity flexibility exists, such as, a certain range of possible working hours a week for example. The methods differ in the amount of information used whereby all are based on the cumulated capacity demand at each machine. In a simulation study the methods' impact on service level and tardiness is compared to a constant provided capacity for a single and a multi-machine setting. It is shown that the tested capacity setting methods can lead to an increase in service level and a decrease in average tardiness in comparison to a constant provided capacity. The methods using information on processing time and customer required lead time distribution perform best. The results found in this paper can help practitioners to make efficient use of their flexible capacity.

Influence of dispatching rules on average production lead time for multi-stage production systems.

In this paper the influence of different dispatching rules on the average production lead time is investigated. Two theorems based on covariance between processing time and production lead time are formulated and proved theoretically. Theorem 1 links the average production lead time to the "processing time weighted production lead time" for the multi-stage production systems analytically. The influence of different dispatching rules on average lead time, which is well known from simulation and empirical studies, can be proved theoretically in Theorem 2 for a single stage production system. A simulation study is conducted to gain more insight into the influence of dispatching rules on average production lead time in a multi-stage production system. We find that the "processing time weighted average production lead time" for a multi-stage production system is not invariant of the applied dispatching rule and can be used as a dispatching rule independent indicator for single-stage production systems.