Simulation-based optimization methods for setting production planning parameters

Margaretha Gansterer, Christian Almeder and Richard F. Hartl

International Journal of Production Economics, 2014, vol. 151, issue C, 206-213

Abstract: This paper refers to a hierarchical production planning system in a make-to-order environment. A challenging task in this context is to determine good production parameter settings in order to benefit from established planning methods. We present a framework for hierarchical production planning which we use to identify good settings for three planning parameters, namely planned leadtimes, safety stock, and lotsizes. Within a discrete-event simulation which mimics the production system we use a mathematical optimization model for replicating the decision problem. This mathematical model is solved to optimality using a standard optimization engine. We use data referring to four different demand market situations in order to derive general statements concerning the quality and sensitivity of the three analyzed planning parameters.

Keywords: Production planning; Simulation; Optimization; Hierarchical planning; Planning parameters (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:151:y:2014:i:c:p:206-213

DOI: 10.1016/j.ijpe.2013.10.016

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