A Lot-Sizing Algorithm for Reducing Nervousness in MRP Systems

Previous work dealt with the problems of nervousness in Material Requirements Planning (MRP) Systems when production schedules were modified to include setups which previously had not been scheduled. In this work we further examine nervousness and its cost. By modifying the setup costs used in the Wagner-Whitin algorithm, we develop a generalized solution methodology for dealing with situations in which new setups are added to the production schedule and existing setups are cancelled.