Stochastic material requirements planning for optional parts†

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Abstract
Most procedures in materials management may be grouped into two classes: deterministic material requirements planning with bill of material explosion on the one hand, and usage-oriented stochastic inventory control models on the other. Each approach is also used for optional parts. With the first class of procedures, however, the random aspect of usage ratios is neglected, whereas in the second class of product structure, relations to planned final products are lost sight of. In the following paper, there is first developed a model of usage ratio generation which reveals the factors influencing the parameters of a usage ratio distribution. The model exhibits satisfactory agreement with practical observation. The paper then demonstrates how usage ratios may be included in a material requirements planning procedure despite their stochastic nature

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