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Hierarchical Production Planning: A Single Stage System

Author

Listed:
  • 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)

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.

Suggested Citation

  • Gabriel R. Bitran & Elizabeth A. Haas & Arnoldo C. Hax, 1981. "Hierarchical Production Planning: A Single Stage System," Operations Research, INFORMS, vol. 29(4), pages 717-743, August.
    • Handle: RePEc:inm:oropre:v:29:y:1981:i:4:p:717-743
    DOI: 10.1287/opre.29.4.717
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    Citations

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    Cited by:

    1. James R. Bradley & Peter W. Glynn, 2002. "Managing Capacity and Inventory Jointly in Manufacturing Systems," Management Science, INFORMS, vol. 48(2), pages 273-288, February.
    2. Gfrerer, Helmut & Zapfel, Gunther, 1995. "Hierarchical model for production planning in the case of uncertain demand," European Journal of Operational Research, Elsevier, vol. 86(1), pages 142-161, October.
    3. Gahm, Christian & Uzunoglu, Aykut & Wahl, Stefan & Ganschinietz, Chantal & Tuma, Axel, 2022. "Applying machine learning for the anticipation of complex nesting solutions in hierarchical production planning," European Journal of Operational Research, Elsevier, vol. 296(3), pages 819-836.
    4. Malte Meistering & Hartmut Stadtler, 2020. "Stabilized-cycle strategy for a multi-item, capacitated, hierarchical production planning problem in rolling schedules," Business Research, Springer;German Academic Association for Business Research, vol. 13(1), pages 3-38, April.
    5. Schneeweiss, Ch., 1998. "Hierarchical planning in organizations: Elements of a general theory," International Journal of Production Economics, Elsevier, vol. 56(1), pages 547-556, September.
    6. Zapfel, Gunther, 1996. "Production planning in the case of uncertain individual demand Extension for an MRP II concept," International Journal of Production Economics, Elsevier, vol. 46(1), pages 153-164, December.
    7. Samaddar, Subhashish & Rabinowitz, Gad & Zhang, Guoqiang Peter, 2005. "An experimental analysis of solution performance in a resource sharing and scheduling problem," European Journal of Operational Research, Elsevier, vol. 165(1), pages 139-156, August.
    8. 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.
    9. Patriksson, Michael, 2008. "A survey on the continuous nonlinear resource allocation problem," European Journal of Operational Research, Elsevier, vol. 185(1), pages 1-46, February.
    10. Xue, Guisen & Felix Offodile, O. & Zhou, Hong & Troutt, Marvin D., 2011. "Integrated production planning with sequence-dependent family setup times," International Journal of Production Economics, Elsevier, vol. 131(2), pages 674-681, June.
    11. Jans, R.F. & Degraeve, Z., 2005. "Modeling Industrial Lot Sizing Problems: A Review," ERIM Report Series Research in Management ERS-2005-049-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    12. Golenko-Ginzburg, Dimitri & Sinuany-Stern, Zilla & Kats, Vladimir, 1996. "A multilevel decision-making system with multiple resources for controlling cotton harvesting," International Journal of Production Economics, Elsevier, vol. 46(1), pages 55-63, December.
    13. Tian, Feng & Willems, Sean P. & Kempf, Karl G., 2011. "An iterative approach to item-level tactical production and inventory planning," International Journal of Production Economics, Elsevier, vol. 133(1), pages 439-450, September.
    14. Huang, Hai-Jun & Xu, Gang, 1998. "Aggregate scheduling and network solving of multi-stage and multi-item manufacturing systems," European Journal of Operational Research, Elsevier, vol. 105(1), pages 52-65, February.
    15. Ozdamar, Linet & Bozyel, M. Ali & Birbil, S. Ilker, 1998. "A hierarchical decision support system for production planning (with case study)," European Journal of Operational Research, Elsevier, vol. 104(3), pages 403-422, February.
    16. James R. Bradley & Bruce C. Arntzen, 1999. "The Simultaneous Planning of Production, Capacity, and Inventory in Seasonal Demand Environments," Operations Research, INFORMS, vol. 47(6), pages 795-806, December.
    17. Jaya Singhal & Kalyan Singhal, 2008. "A Noniterative Algorithm for the Linear-Quadratic Profit-Maximization Model for Smoothing Multiproduct Production," INFORMS Journal on Computing, INFORMS, vol. 20(2), pages 169-178, May.
    18. Joachim Arts & Simme Flapper, 2015. "Aggregate overhaul and supply chain planning for rotables," Annals of Operations Research, Springer, vol. 224(1), pages 77-100, January.
    19. Schneewei[beta], Christoph, 1995. "Hierarchical structures in organisations: A conceptual framework," European Journal of Operational Research, Elsevier, vol. 86(1), pages 4-31, October.
    20. H. S. Yan, 2000. "Hierarchical Stochastic Production Planning with Delay Interaction," Journal of Optimization Theory and Applications, Springer, vol. 104(3), pages 659-689, March.
    21. Julia Pahl & Stefan Voß & David Woodruff, 2007. "Production planning with load dependent lead times: an update of research," Annals of Operations Research, Springer, vol. 153(1), pages 297-345, September.

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