Title: Lead time and inventory cost for rough-cut capacity planning

Authors: P. C. Pandey, M. Ahsan Akhtar Hasin

Addresses: Industrial Systems Engineering, Asian Institute of Technology, G.P.O. Box 2754, Bangkok 10501, Thailand. ' Industrial Systems Engineering, Asian Institute of Technology, G.P.O. Box 2754, Bangkok 10501, Thailand

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

Keywords: rough cut capacity planning; integration; inventory cost; manufacturing lead times; MRPII; production planning; master production schedule; MPS rescheduling; manufacturing resource planning.

DOI: 10.1504/IJCAT.1997.062254

International Journal of Computer Applications in Technology, 1997 Vol.10 No.5/6, pp.280 - 288

Published online: 02 Jun 2014 *

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