Title: Finite capacity material requirement planning with supplier constraints

Authors: Benyaphorn Paopongchuang; Pisal Yenradee

Addresses: Industrial Engineering Program, Sirindhorn International Institute of Technology, Thammasat University, Rangsit Campus, P.O. Box 22, Pathum Thani 12121, Thailand ' Industrial Engineering Program, Sirindhorn International Institute of Technology, Thammasat University, Rangsit Campus, P.O. Box 22, Pathum Thani 12121, Thailand

Abstract: This paper develops a practical finite capacity material requirement planning (FCMRP) system that considers finite capacity of work centres and constraints of suppliers. First, a variable lead-time MRP system is used to transform the customer orders to planned work and purchase orders. The purchase orders are evaluated and revised by the suppliers based on their constraints. Second, the system schedules manufacturing operations on key work centres of not only the factory but also suppliers. Third, a linear programming model is used to determine the optimal start time of each manufacturing operation to minimise the overall performance index, considering finite capacity of all work centres, precedence constraints of operations, and supplier constraints. The proposed FCMRP system is tested using an experimental case. The results indicate that all scheduling mechanisms have significant effect on the overall performance index and the FCMRP system with supplier constraints can generate more realistic schedule than the system without supplier constraints.

Keywords: finite capacity MRP; material requirements planning; FCMRP; supply chain management; SCM; scheduling; linear programming; supplier constraints.

DOI: 10.1504/IJISE.2014.062543

International Journal of Industrial and Systems Engineering, 2014 Vol.17 No.3, pp.350 - 375

Published online: 25 Jul 2014 *

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