Improving materials management effectiveness : A step towards agile enterprise

This research provides a literature review in the field of uncertainty dampening methods for manufacturing systems, and proposes a new model to improve materials management effectiveness in materials requirements planning environments. The literature review gives rise to a classification framework of the models along nine structural dimensions that refer to the safety buffer treatment, the environmental characteristics and the type of approach. On the basis of the classification framework, the proposed model provides guidelines for approaching the problem of dimensioning, positioning and managing safety stocks against demand uncertainty. The effectiveness of the proposed model has been tested by comparing it to the traditional approach, through a computer‐based simulation.