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Hierarchical Production Planning: A Two-Stage System

Author

Listed:
  • Gabriel R. Bitran

    (Massachusetts Institute of Technology, Cambridge, Massachusetts)

  • Elizabeth A. Haas

    (McKinsey and Company, Boston, Massachusetts)

  • 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 two-stage process. A conceptual framework for this approach is described. The specific mathematical models proposed for the various hierarchical levels are discussed. The methodology is evaluated in an actual setting. The performance of the hierarchical system is contrasted with an MRP design. Encouraging results are reported.

Suggested Citation

  • Gabriel R. Bitran & Elizabeth A. Haas & Arnoldo C. Hax, 1982. "Hierarchical Production Planning: A Two-Stage System," Operations Research, INFORMS, vol. 30(2), pages 232-251, April.
    • Handle: RePEc:inm:oropre:v:30:y:1982:i:2:p:232-251
    DOI: 10.1287/opre.30.2.232
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    Citations

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    Cited by:

    1. Mingxing Li & Ray Y. Zhong & Ting Qu & George Q. Huang, 2022. "Spatial–temporal out-of-order execution for advanced planning and scheduling in cyber-physical factories," Journal of Intelligent Manufacturing, Springer, vol. 33(5), pages 1355-1372, June.
    2. 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.
    3. Tapia-Ubeda, Francisco J. & Miranda, Pablo A. & Macchi, Marco, 2018. "A Generalized Benders Decomposition based algorithm for an inventory location problem with stochastic inventory capacity constraints," European Journal of Operational Research, Elsevier, vol. 267(3), pages 806-817.
    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. Bitran, Gabriel R. & Tirupati, Devanath., 1989. "Hierarchical production planning," Working papers 3017-89., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    6. Hans, E.W. & Herroelen, W. & Leus, R. & Wullink, G., 2007. "A hierarchical approach to multi-project planning under uncertainty," Omega, Elsevier, vol. 35(5), pages 563-577, October.
    7. 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.
    8. Buxey, Geoff, 2003. "Strategy not tactics drives aggregate planning," International Journal of Production Economics, Elsevier, vol. 85(3), pages 331-346, September.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. Pahl, Julia & Voß, Stefan, 2014. "Integrating deterioration and lifetime constraints in production and supply chain planning: A survey," European Journal of Operational Research, Elsevier, vol. 238(3), pages 654-674.
    14. Giovanni Pantuso & Kjetil Fagerholt & Stein W. Wallace, 2015. "Solving Hierarchical Stochastic Programs: Application to the Maritime Fleet Renewal Problem," INFORMS Journal on Computing, INFORMS, vol. 27(1), pages 89-102, February.
    15. 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.
    16. 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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