Release Date Optimization in MRP Using Clearing Functions

Abstract

This paper integrates a clearing function (CF)-based release planning approach into Material Requirements Planning (MRP) to address its limitations in modeling capacity constraints and dynamic lead times. The proposed optimization model replaces MRP's backward scheduling step while preserving its overall structure. Performance is evaluated through simulation experiments on two flow shop systems that explore a range of demand uncertainties and utilization levels. Computational results show that the proposed approach is capable of yielding significant improvements over the conventional backward scheduling approach, due to its ability to compute planned lead times for individual production orders as opposed to BOM items.