Hierarchical Production Planning: A Single Stage System

Gabriel R. Bitran, Elizabeth A. Haas and Arnoldo C. Hax
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Gabriel R. Bitran: Massachusetts Institute of Technology, Cambridge, Massachusetts
Elizabeth A. Haas: McKinsey & Company, Inc., Cleveland, Ohio
Arnoldo C. Hax: Massachusetts Institute of Technology, Cambridge, Massachusetts

Operations Research, 1981, vol. 29, issue 4, 717-743

Abstract: This paper presents a hierarchical approach to plan and schedule production in a manufacturing environment that can be modeled as a single stage process. Initially, the basic tradeoffs inherent to production planning decisions are represented by means of an aggregate model, which is solved on a rolling horizon basis. Subsequently, the first solution of the aggregate plan is disaggregated, considering additional cost objectives and detailed demand constraints. Several improvements in the methodology related to hierarchical production planning are suggested. Special attention is given to alternative disaggregation procedures, problems of infeasibilities, and the treatment of high setup costs. Computational results, based on real life data, are presented and discussed.

Keywords: 581 production planning and scheduling; 541 hierarchical planning systems (search for similar items in EconPapers)
Date: 1981
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Citations: View citations in EconPapers (21)

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