Abstract
Computerized MRP systems used in industrial practice have been criticized by researchers as well as industrial users with respect to their limited ability to generate feasible production schedules. In this paper the lot size planning stage of a typical MRP system is considered. Several modelling alternatives for multi-level lot sizing are discussed with the help of a small example. A resourceconstrained approach to lot sizing- called MRP rc- is presented that cooperates with standard production planning and control systems. In this approach the item-by-item lot size planning is substituted by the heuristic solution of a multi-level multi-item dynamic capacitated lot sizing problem with setup times for general product structures.
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