Cyclical schedules vs. dynamic sequencing: Replenishment dynamics and inventory efficiency

Abstract

This paper addresses the efficiency of fixed sequence (cyclical) scheduling systems, relative to that of dynamically sequenced, order point methods of production control. The criterion for comparison is the aggregate inventory required to achieve a target fill rate, taking into account the alternative replenishment dynamics arising under the respective systems. A simulation analysis demonstrates that cyclical scheduling may have smaller aggregate inventory requirement when the production process is highly utilized, and when this utilization is due to demand for a small number of items having large setup times.