TY - UNPB

T1 - Time bucket size and lot-splitting approach

AU - Riezebos, Jan

N1 - Relation: http://som.rug.nl/
date_submitted:2002
Rights: Graduate School/Research Institute, Systems, Organisations and Management (SOM)

PY - 2002

Y1 - 2002

N2 - We address the problem of lot splitting for various time bucket lengths in MRP systems. Two
approaches for lot splitting can be applied: either use the same (equal) or a variable number of
subbatches. Equal subbatching strategies have logistical and computational advantages.
Literature states that variable batching strategies are only marginal better. However, these
results do not take into account the sensitivity for changes in time bucket length. Managers
have reduced time bucket lengths in planning systems. We examine the sensitivity of lot
splitting for these changes. Our study reveals that it is not cost-effective to disregard time
bucket length when deciding on the number of subbatches. Using the same number of
subbatches per time bucket for all products results in substantial cost-differences, where the
magnitude is affected by the discontinuity of the total cost curve. For a given time bucket
length, a cost difference with a variable number of subbatches per operation of only 2.1% can
be obtained if an appropriate, equal number of subbatches for each product can be found.
Other equal subbatching strategies show much larger cost differences on average, ranging
from 4-11%. In order to obtain these results, a new variable subbatch heuristic has been
designed.

AB - We address the problem of lot splitting for various time bucket lengths in MRP systems. Two
approaches for lot splitting can be applied: either use the same (equal) or a variable number of
subbatches. Equal subbatching strategies have logistical and computational advantages.
Literature states that variable batching strategies are only marginal better. However, these
results do not take into account the sensitivity for changes in time bucket length. Managers
have reduced time bucket lengths in planning systems. We examine the sensitivity of lot
splitting for these changes. Our study reveals that it is not cost-effective to disregard time
bucket length when deciding on the number of subbatches. Using the same number of
subbatches per time bucket for all products results in substantial cost-differences, where the
magnitude is affected by the discontinuity of the total cost curve. For a given time bucket
length, a cost difference with a variable number of subbatches per operation of only 2.1% can
be obtained if an appropriate, equal number of subbatches for each product can be found.
Other equal subbatching strategies show much larger cost differences on average, ranging
from 4-11%. In order to obtain these results, a new variable subbatch heuristic has been
designed.

M3 - Working paper

BT - Time bucket size and lot-splitting approach

PB - s.n.

ER -