A statistical analysis of yield loss in material requirements planning systems

Abstract

In most of the research done on material requirements planning (MRP) systems it has been assumed that production and assembly operations incur no yield loss. This assumption has been dropped and performance of popular lot-size adjustment rules borrowed from the single-stage reject allowance problem has been tested in an MRP environment. Both the effect of the rules on the component inventory, and their ability to meet the master production schedule requirements have been analysed. An appropriate statistical design has been presented.

Keywords:

• MRP
• yield loss
• multi-stage scheduling