Research issues for multi‐level lot sizing in MRP systems

What lot size model(s) to use in a Material Requirements Planning (MRP) system is an unresolved and often debated issue. The concept of dependent demand, the complex network defined by the product structure, the dynamics of an operating MRP‐based system, and the subsequent use of the planned order release schedule by other company subsystems represent a totally new environment for making and managing lot size decisions. The purpose of this paper is to identify and briefly examine ten research issues related to lot sizing in a dependent demand product structure. These ten issues expand the solution space for lot sizing in an MRP‐based system compared to a reorder point based system. Areas for further research are suggested.