MRP system performance under lumpy demand environments

Material requirements planning (MRP) systems are deemed to deal with master schedules with lumpy demand patterns better than any other production sche duling system. Past studies have advocated important advantages of using MR P systems. The objective of this paper is to look into the impact of patter ns of demand lumpiness on the performance of MRP systems by a simulation st udy. Results show that there is an important threshold point in terms of de gree of lumpiness at which MRP system performance starts to deteriorate in the operating conditions considered. If master production schedules (MPS) c an be controlled by manufacturers, MRP users should exercise caution to int roduce demand lumpiness in MPS to improve system performance. If not, MRP u sers should then examine the given lumpiness and choose an appropriate lot- sizing rule that has been shown to take advantage of the effect of demand l umpiness.