FREEZING THE MASTER PRODUCTION SCHEDULE UNDER DEMAND UNCERTAINTY

Managing the trade‐off between achieving a stable master production schedule (MPS) and being responsive to changes in customer requirements is a difficult problem in many firms where providing a high level of customer service is viewed as an important competitive factor. One alternative for managing this trade‐off is to freeze an agreed portion of the MPS. This paper investigates the impact of adjustments in the design parameters of MPS freezing methods on two performance measures (MPS lot‐sizing cost and stability) under stochastic demand conditions in a rolling planning horizon environment given a service level target. Simulation experiments are reported which indicate that many of the conclusions regarding the design of MPS freezing methods obtained under deterministic demand conditions hold under stochastic demand. 1990 Decision Sciences Institute