Multilevel lot-sizing heuristics and freezing the master production schedule in material requirements planning systems

This paper compares the performance of a new improved heuristic (STIL) proposed by Coleman and McKnew (1991, Decision Sciences , 22 , 136-156) Wagner-Whitin (WW), cost-modified (MWW) and some simple lot-sizing rules found to perform well by Zhao et al . (1995, International Journal of Production Research , 33 (8), 2241-2276). It also investigates the impact of the lot-sizing ruleson the selection ofthe parametersfor freezing the master production schedule (MPS). The experimental settings include forecasting, master production scheduling and material requirements planning under a rolling time horizon. The result of the study shows that the STIL heuristic, WW rule and MWW rule do not really outperform the simple costmodified Silver-Meal (MSM) and the Silver-Meal/Lot-forLot (SM/LFL), even though they require substantially higher comheuristics against those of the Wagner-Whitin putation time. The study also shows that the selection of the parameters for freezing the MPS is not significantly influenced by the selection of the lot-sizing rules.