Hierarchical production planning

The death of old products, the birth of new ones, changing demands, and the need to compose the optimal hierarchical production plan with an optimal use of the equipment and the shortest possible total production time make the timing of production more important than plant design. The use of rigorous optimization techniques can be most profitable at production planning and scheduling of existing batch plants, especially multipurpose plants. 

Vicens E, Alemany ME, Andres C, Guarch JJ (2001) A design and application methodology for hierarchical production planning decision support systems in an enterprise integration context. International Journal of Production Economics 74 5-20... 

Venkateswaran, J., Son, Y., and Jones, A. Hierarchical production planning using a hybrid system dynamic-discrete event simulation architecture. In Proceedings of the 2004 Winter Simulation Conference, volume 2, pages 1094-1102, 2004. 

Bitran GR, Tirupati D (1993) Hierarchical production planning. In Graves SC, Rinnooy Kan AHG, Zipkin PH (eds) Handbooks in optaatitnis research and management science logistics of production and inventory, vol. 4. Elsevier, Amsterdam, pp 523-568... 

Graves SC (1982) Using Lagrangean techniques to solve hierarchical production planning problems. Manag Sci 28 260-275... 

Bitran G., E. Haas and A.C. Hax (1981), "Hierarchical Production Planning A Single Stage System" Operations Research, Vol. 29, pp. 717-743. 

Hax AC, Meal HC (1975) Hierarchical integration of production planning and scheduling. In Geisler MA (ed) Logistics, TIMS studies in the managcancait sciences, vol. I. Elsevier, Amsterdam, pp 53-69... 

The top level hierarchical plan becomes the input for the next level of planning, which is the master production schedule (MPS) or master schedule level. This schedule is always prepared in terms of end items (i.e., what is shipped from the factory or plant). If the factory produces bicycles, then the end item is a bicycle. But, if the factory produces front wheels for another factory that assembles them onto frames, then the end item is the front wheel. Planning for the MPS is constrained by the earlier planning which resulted in the production plan. Remember that the production plan was developed in terms of product families. The MPS is very specific about the end item. For example, the production plan for an apparel factory may have scheduled 200 dozen men s long sleeve shirts for the month of January. The production plan did not specify color or design, just the family of shirts that would be produced. The MPS might then divide up these 200 dozen into specific end items to be produced in specific time periods. This is illustrated in Figure 9.3 for the month of January. Note that the shirts that are scheduled to be produced in all of the weeks of January total the 200 dozen scheduled to be produced in January. 

Hax, A.C., and Meal, H.C. (1975) Hierarchical integration of production planning and scheduling, in TIMS Studies in Management Science, Vol. 1 Logistics, M. Geisler, Ed., New York Elsevier. 

Gimeno L., Rodrigues, M.T., 2002, Sequential Approach to Production Planning in Multisite Environments, 15th IFAC World Congress, Barcelona, Spain. Homburg, C., 1998, Hierarchical multi-objective decision making, European Journal of Operational Research, 105, 155-161. 

In Section 11.4.5, we have already seen that the SNP optimizer is restricted to plan in the SNP horizon. If campaign production problems are solved in the context of hierarchical planning it is important that the SNP optimizer respects setup operations of PP/DS orders in the overlap of the SNP and PP/DS horizon. This... 

The challenge in supply planning is that specifically the available production quantities per month can depend on the schedule of the products on a specific resource if change-overs consume significant time so that the overall capacity error in die rough-cut master plan would not be acceptable. Therefore, supply network planning includes also the aspect of hierarchical planning, where production quantities based on a discrete monthly... 

---