Freezing issue on stability master production scheduling for supplier network: Decision making view

Abstract

In the daily operation, there are frequently changes in customer order requirement which will induce instability of the MPS. Moreover, the frequently adjustment of MPS can induce fluctuation of production and increasing of inventory cost as well as decreasing service level of customer. Most of studies about instability of MPS use freezing method and rolling procedure to adjust MPS periodically. Freezing is the proportion of planning horizon being frozen, whereas rolling procedure is a method replanning periodically of MPS using newly updated demand data. This study is focused on interval freezing length as an issue of decision making. In supply chain, a manufacturer is supported by suppliers to supply material requirement. Since a manufacturer plan production schedule on MPS the freezing interval is determined that will be informed to suppliers which supply the material requirement. In previous research, the freezing interval is decided by manufacturer as necessary decision maker. This decision must be followed by suppliers though it is not beneficial for them. It can be concluded that this condition is no win-win situation. Hence, this research proposes that suppliers will be involved as decision maker besides a manufacturer so the interval freezing is decided by two-side decision maker.