Abstract
During the past few decades, a substantial amount of research has been undertaken in the area of hierarchical production planning. Hax and Meal [19] first proposed a hierarchical approach to the production planning process, with higher-level decisions imposing constraints on the lower-level decision process. Besides computational advantages, a hierarchical procedure reflected the actual hierarchy of decisions prevalent in organizations. Subsequently, Bitran et al., developed a hierarchical planning procedure for single-stage production systems [10] and for two-stage production systems [11]. A hierarchical planning model for kanban systems is developed in this paper. Solution techniques for the aggregate problem and a disaggregation procedure are described. Application of the model to CON- WIP and base-stock systems is also discussed.
Published Version
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