The development of a hierarchical rough-cut capacity planning model and demand management system for fishing-net manufacturing

Chiung-Hsi Hsieh, Taho Yang, Chao-Ton Su and Cheng-Han Lin

European Journal of Industrial Engineering, 2012, vol. 6, issue 4, 422-440

Abstract: This research develops a demand management system, incorporating a machine-rate model, a rough-cut capacity planning (RCCP) model, and a demand management model for the fishing-net production industry. The machine-rate model is used to calculate a machine workload for the RCCP model to estimate capacity utilisation. The demand management model is important for quick response to customers' demands under a make-to-order (MTO) environment, such as that of the fishing-net production industry which has high variable demand requirements when compared to other industries. The demand management system has been successfully implemented in a fishing-net production company; and a simulation model is used to illustrate its effectiveness for demand management. The results indicate that the average profit per metric ton could increase from US$1,211 to US$1,353, approximately 11.7%. Moreover, the service level would be increased from 80.86% to 97.70%. [Received 11 January 2010; Revised 18 October 2010; Accepted 01 February 2011]

Keywords: demand management; fishing net manufacture; rough-cut capacity planning; RCCP; simulation; optimisation; industrial engineering; machine rate; fishing nets; make-to-order; MTO. (search for similar items in EconPapers)
Date: 2012
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