The use of knowledge-based Genetic Algorithm for starting time optimisation in a lot-bucket MRP

Abstract

In production planning, Material Requirement Planning (MRP) is usually developed based on time-bucket system, a period in the MRP is representing the time and usually weekly. MRP has been successfully implemented in Make To Stock (MTS) manufacturing, where production activity must be started before customer demand is received. However, to be implemented successfully in Make To Order (MTO) manufacturing, a modification is required on the conventional MRP in order to make it in line with the real situation. In MTO manufacturing, delivery schedule to the customers is defined strictly and must be fulfilled in order to increase customer satisfaction. On the other hand, company prefers to keep constant number of workers, hence production lot size should be constant as well. Since a bucket in conventional MRP system is representing time and usually weekly, hence, strict delivery schedule could not be accommodated. Fortunately, there is a modified time-bucket MRP system, called as lot-bucket MRP system that proposed by Casimir in 1999. In the lot-bucket MRP system, a bucket is representing a lot, and the lot size is preferably constant. The time to finish every lot could be varying depends on due date of lot. Starting time of a lot must be determined so that every lot has reasonable production time. So far there is no formal method to determine optimum starting time in the lot-bucket MRP system. Trial and error process usually used for it but some time, it causes several lots have very short production time and the lot-bucket MRP would be infeasible to be executed. This paper presents the use of Genetic Algorithm (GA) for optimisation of starting time in a lot-bucket MRP system. Even though GA is well known as powerful searching algorithm, however, improvement is still required in order to increase possibility of GA in finding optimum solution in shorter time. A knowledge-based system has been embedded in the proposed GA as the improvement effort, and it is proven that the improved GA has superior performance when used in solving a lot-bucket MRP problem.