An efficient production planning approach based demand driven MRP under resource constraints

Abstract

Production plans based on Material Requirement Planning (MRP) frequently fall short in reflecting actual customer demand and coping with demand fluctuations, mainly due to the rising complexity of the production environment and the challenge of making precise predictions. At the same time, MRP is deficient in effective adjustment strategies and has inadequate operability in plan optimization. To address material management challenges in a volatile supply-demand environment, this paper creates a make-to-stock (MTS) material production planning model that is based on customer demand and the demand-driven production planning and control framework. The objective of the model is to optimize material planning output under resource constraints (capacity and storage space constraints) to meet the fluctuating demand of customers. To solve constrained optimization problems, the demand-driven material requirements planning (DDMRP) management concept is integrated with the grey wolf optimization (GWO) algorithm and proposed the DDMRP-GWO algorithm. The proposed DDMRP-GWO algorithm is used to optimize the inventory levels, shortage rates, and production line capacity utilization simultaneously. To validate the effectiveness of the proposed approach, two sets of customer demand data with different levels of volatility are used in experiments. The results demonstrate that the DDMRP-GWO algorithm can optimize the production capacity allocation of different types of parts under the resource constraints, enhance the material supply level, reduce the shortage rate, and maintain a stable production process.