Lead time estimation in MRP/ERP for make-to-order manufacturing systems

In this paper we consider the problem of dynamically updating the manufacturing lead times estimates that are used in MRP systems. Once a new order with specific and known processing requirements enters a make-to-order manufacturing system, an exact completion time estimate is assigned to it that is based on the system's current status. The approach that is suggested addresses multi-machine, multi-product manufacturing environments with no special configuration of their resources: To this objective, simple, iterative algorithms are used to substitute the fixed lead time estimates of typical MRP systems. The results that are presented underline the significant improvement of the proposed approach over static, constant MRP lead time estimates that are as yet exclusively resorted to. The case study that is presented also supports the method's ease of applicability in real-life Make-To-Order environments.