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Open Order Due Date Maintenance in MRP Systems

Author

Listed:
  • Richard J. Penlesky

    (College of Business Administration, Marquette University, Milwaukee, Wisconsin 53233)

  • William L. Berry

    (School of Business Administration, The University of North Carolina, Chapel Hill, North Carolina 27514)

  • Urban Wemmerlöv

    (School of Business, University of Wisconsin, Madison, Wisconsin 53706)

Abstract

This paper is concerned with the problem of maintaining open order due dates in job shops that plan and schedule their operations using Material Requirements Planning (MRP) methodology. Two different techniques for dealing with open order due date changes are analyzed using customer service level and total inventory level performance measures. With the first technique, called the fixed due date approach, due dates are never changed from those originally assigned to orders when released to the shop. With the second technique, called the dynamic due date approach, all due dates are updated to reflect actual need dates. Beyond evaluating them in an MRP context, this study extends current understanding of these two techniques by observing them in a variety of different operating environments. The results of the study indicate that: (1) the dynamic due date approach performs as good as, or better than, the fixed due date approach across a wide range of operating conditions; and (2) operating conditions have an important effect on the magnitude of the performance differential between the two approaches.

Suggested Citation

  • Richard J. Penlesky & William L. Berry & Urban Wemmerlöv, 1989. "Open Order Due Date Maintenance in MRP Systems," Management Science, INFORMS, vol. 35(5), pages 571-584, May.
  • Handle: RePEc:inm:ormnsc:v:35:y:1989:i:5:p:571-584
    DOI: 10.1287/mnsc.35.5.571
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    Citations

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    Cited by:

    1. Grubbstrom, Robert W. & Tang, Ou, 2000. "Modelling rescheduling activities in a multi-period production-inventory system," International Journal of Production Economics, Elsevier, vol. 68(2), pages 123-135, November.
    2. Al-Mubarak, Fahad & Canel, Cem & Khumawala, Basheer M., 2003. "A simulation study of focused cellular manufacturing as an alternative batch-processing layout," International Journal of Production Economics, Elsevier, vol. 83(2), pages 123-138, February.
    3. Logendran, Rasaratnam & Talkington, Diane, 1997. "Analysis of cellular and functional manufacturing systems in the presence of machine breakdown," International Journal of Production Economics, Elsevier, vol. 53(3), pages 239-256, December.
    4. Chakravarty, Amiya K. & Balakrishnan, Nagraj, 1998. "Reacting in real-time to production contingencies in a capacitated flexible cell," European Journal of Operational Research, Elsevier, vol. 110(1), pages 1-19, October.
    5. Srivastava, Rajesh & Benton, W. C., 1998. "Purchase quantity discounts and open order rescheduling in an assemble-to-order environment: The hidden economic tradeoffs," European Journal of Operational Research, Elsevier, vol. 110(2), pages 261-271, October.

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