Determination of master production schedule replanning frequency for various forecast window intervals

Abstract

This paper examines the impact of forecast window intervals on replanning frequencies for a rolling horizon master production schedule (MPS). The problem environment for this study is an actual MPS operation of a paint company and includes features such as multiple production lines, multiple products, capacity constraints, minimum inventory requirements. A mixed integer goal programming model formulated for the MPS problem is used to analyze the impact of forecast window interval length on replanning frequencies and MPS performance in a rolling horizon setting. Given demand certainty, results indicate that the length of the forecast window interval influences the choice of replanning frequency for this company environment. A three‐month forecast window interval with a two‐month replanning frequency provided the best MPS performance in terms of total cost.