LEAD TIME AND INVENTORY COST FOR ROUGH-CUT CAPACITY PLANNING

Rough-Cut-Capacity-Planning (RCCP) is an important activity associated with the Master Production Scheduling of the Manufacturing Resource P lanning (MRPII). The existing method of calculating the required and a vailable system capacity does not consider the actual processing seque nce used in the processing of a product, as described by shop routing, although this needs to be considered. Also, the existing methods do n ot account for the effect of rescheduling of the MPS on inventory hold ing cost. These two important factors must be considered during RCCP a nd rescheduling of MPS. This paper aims at analysing and formulating t hese two important factors for the specified conditions.