{"title":"DDMRP relative priority for production execution: an assessment by simulation","authors":"Nuno Octávio Fernandes, Matthias Thürer, Sílvio Carmo Silva","doi":"10.1007/s12063-024-00503-2","DOIUrl":null,"url":null,"abstract":"<p>Demand-Driven Material Requirements Planning (DDMRP) was designed to improve supply chain performance in complex and uncertain environments. Literature on the topic suggests that production replenishment orders should be dispatched for execution based on the buffers’ penetration ratio of the products ordered, which is a measure of protection against stock depletion. However, the actual performance impact of this dispatching rule remains largely unknown as is the impact of different lot transfer policies. A simulation analysis was carried out to compare the performance of the lowest net flow position, the highest buffer penetration ratio, earliest operation due date and first-come first-served rules under synchronized and unsynchronized lot transfer policies. Results of our study show that the choice of dispatching rules is contingent on the setting of top-of-yellow and top-of-green, which determine the re-order quantity, and on the demand mix of products. The earliest operation due date rule shows great potential to outperform the rule typically applied in a DDMRP context specifically for a high demand mix. These findings provide important insights for improving industrial practice and for guiding future research on DDMRP.</p>","PeriodicalId":46120,"journal":{"name":"Operations Management Research","volume":null,"pages":null},"PeriodicalIF":6.9000,"publicationDate":"2024-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Operations Management Research","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1007/s12063-024-00503-2","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
Demand-Driven Material Requirements Planning (DDMRP) was designed to improve supply chain performance in complex and uncertain environments. Literature on the topic suggests that production replenishment orders should be dispatched for execution based on the buffers’ penetration ratio of the products ordered, which is a measure of protection against stock depletion. However, the actual performance impact of this dispatching rule remains largely unknown as is the impact of different lot transfer policies. A simulation analysis was carried out to compare the performance of the lowest net flow position, the highest buffer penetration ratio, earliest operation due date and first-come first-served rules under synchronized and unsynchronized lot transfer policies. Results of our study show that the choice of dispatching rules is contingent on the setting of top-of-yellow and top-of-green, which determine the re-order quantity, and on the demand mix of products. The earliest operation due date rule shows great potential to outperform the rule typically applied in a DDMRP context specifically for a high demand mix. These findings provide important insights for improving industrial practice and for guiding future research on DDMRP.
期刊介绍:
Operations Management Research is a peer-reviewed journal that focuses on rapidly publishing high-quality research in the field of operations management. It aims to advance both the theory and practice of operations management across a wide range of topics and research paradigms. The journal covers all aspects of operations management, including manufacturing, supply chain, health care, and service operations. It welcomes various research methodologies, such as case studies, action research, surveys, mathematical modeling, and simulation. The goal of Operations Management Research is to promote research that enhances both the theory and practice of operations management, as it is an applied discipline. The journal also publishes Academic Notes, which are special papers that address research methodologies, the direction of the operations management field, and other topics of interest to academicians. Additionally, there is a demand for shorter and more focused research articles in operations management, which this journal aims to fulfill.