The effect of lot-sizing decisions on MRP: a case study of bumper assembly

Material availability is a critical factor in ensuring smooth production, particularly in automotive manufacturing. Material Requirements Planning (MRP) systems play a central role in managing inventory, scheduling, and lot-sizing to meet production demands efficiently. In the context of bumper assembly, determining the optimal lot size is essential due to the large number of parts and demand fluctuations. Larger lot sizes can lead to excessive inventory levels, increasing storage, handling, and carrying costs, while smaller lot sizes may strain production with frequent setups and deliveries. This study examines the effect of different lot-sizing techniques on the performance of MRP in a bumper manufacturing scenario. It explores how lot-sizing decisions influence lead time, inventory levels, and associated costs such as transportation, warehousing, and production scheduling. The findings support strategic lot-sizing to optimize inventory turnover, reduce operational costs, and enhance information flow accuracy, ultimately contributing to improved production efficiency and organizational profitability.