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Interfacing aggregate plans and master production schedules via a rolling horizon feedback procedure

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  • Chung, Chen-Hua
  • Krajewski, Lee J

Abstract

Aggregate planning and master scheduling are two important levels of a hierarchical production planning process. They serve as the front end of production and operations planning and control systems. It is imperative to have the front end well planned and coordinated. In this study, we demonstrate that a rolling horizon feedback procedure can be an effective coordination mechanism for interfacing aggregate planning and master scheduling. Each time the schedule is rolled ahead, the feedback of performance results from master scheduling provides the aggregate planning subsystem useful information for improving its planning activities. Our experiments show that there are at least three factors that make a rolling horizon procedure attractive: (i) the use of a horizon with a fractional portion of a seasonal cycle, (ii) high smoothing costs, and (iii) high setup costs. Using rolling horizons reduces the total aggregate costs in these situations relative to not using rolling horizons. The potential impacts of the rolling-horizon strategy are greater under some circumstances than others.

Suggested Citation

  • Chung, Chen-Hua & Krajewski, Lee J, 1987. "Interfacing aggregate plans and master production schedules via a rolling horizon feedback procedure," Omega, Elsevier, vol. 15(5), pages 401-409.
  • Handle: RePEc:eee:jomega:v:15:y:1987:i:5:p:401-409
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    Cited by:

    1. de Sampaio, Raimundo J.B. & Wollmann, Rafael R.G. & Vieira, Paula F.G., 2017. "A flexible production planning for rolling-horizons," International Journal of Production Economics, Elsevier, vol. 190(C), pages 31-36.
    2. Buxey, Geoff, 2003. "Strategy not tactics drives aggregate planning," International Journal of Production Economics, Elsevier, vol. 85(3), pages 331-346, September.
    3. Selcuk, B. & Fransoo, J.C. & De Kok, A.G., 2006. "The effect of updating lead times on the performance of hierarchical planning systems," International Journal of Production Economics, Elsevier, vol. 104(2), pages 427-440, December.
    4. Bakker, Hannah & Bindewald, Viktor & Dunke, Fabian & Nickel, Stefan, 2023. "Logistics for diagnostic testing: An adaptive decision-support framework," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1120-1133.
    5. Tom Vogel & Bernardo Almada-Lobo & Christian Almeder, 2017. "Integrated versus hierarchical approach to aggregate production planning and master production scheduling," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(1), pages 193-229, January.

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