Modelling uncertainty under a multi‐echelon ERP‐controlled manufacturing system Available to Purchase

This paper discusses the experimental work in modelling uncertainty under a multi‐echelon enterprise resource planning (ERP)‐controlled manufacturing system. A new method known as part tagging (Ptag) is successfully implemented in a material requirements planning (MRP) planning architecture, which is used to generate a planned order release (POR) schedule for controlling purchase and manufacture operations in a batch manufacturing system using simulation. One of the most important findings is that parts tardy delivery (PTD) is a more responsive performance measure compared with finished products tardy delivery (FPTD); therefore it is recommended that PTD should be measured to reveal the unmasked effects of uncertainty. The main conclusion and implication from this experiment are that an ERP‐controlled manufacturing enterprise should diagnose for uncertainty in a way that produces significant effects on delivery tardiness, so that reduction of their levels will significantly minimise tardy delivery.