Improved hierarchical production planning

Abstract

This article addresses an overview of development and application of an integrated production planning model within the fiberglas industry. The system described represents a second generation in the development cycle of hierarchically based models within this batch production industry. A number of salient issues that distinguish this modeling approach from previous ones are examined. Our contention is that the explicit treatment and integration of demand forecasts within the context of production planning models is a necessary condition for implementation and ongoing use of such systems. Further, due to the nature of practical disaggregate problems, oft cited linear programming (LP) models will be set aside by more flexible goal programming solutions that explicitly recognize the dynamics of variations in product mix, production rates and management objectives. Finally, the development, delivery and maintenance of these planning models will increasingly be performed on microcomputer‐based systems and software versus traditional mainframes.

Integrating production activity control into a hierarchical production‐planning model

“…Liberatore and Miller[7] also applied HPP model for planning at American Olean Tile company. Other applications of HPP models are also reported by [8] and [9].…”

Hierarchical production planning and scheduling in a multi-product, batch process environment

“…The approach seems to be efficient for small-size problems, but computational complexity arises for industrial planning problems. Leong et al (1989) presented a weighted goal programming model, which disaggregates the aggregate plans to lot-sizes and line assignment by product and group and finished goods inventories by product. Saad (1990) presented a goal programming approach for product family disaggregation.…”

Integrating systems concepts into manufacturing information systems

“…In the past, manufacturers were more interested in functional area optimization, particularly emphasizing production efficiency and cost performance. Measures of production efficiency and cost developed in the literature include multi-period production planning (Chung and Krajewski, 1984;Leong et al, 1989), capacity utilization (Pinto et al, 1983), optimal staff solutions (Bechtold et al, 1991) and inventory management (Wagner and Whitin, 1958;Wight, 1984;Atkin and Iyogun, 1988), etc. An optimal solution is usually reached without considering continuous operating conditions, schedule flexibility, and employee preferences and availability.…”