Chapter 10 Hierarchical production planning

Abstract

This chapter discusses basic ingredients of Hierarchical Production Planning (HPP) systems and describes models for single and multi-stage systems. Some important issues related to aggregation and disaggregation in hierarchical systems have been discussed. The role of feedback mechanisms in HPP has been described and two different interpretations of this term have been discussed. The hierarchical models described are primarily deterministic in nature. Hierarchical models represent a stochastic, multi-level decision process in which decisions at higher levels are often based on aggregate imperfect information. These models span a wide variety of manufacturing environments ranging from continuous processes to discrete systems such as batch and job shops. The approach described is a development in the application of the hierarchical approach to control and scheduling problems in discrete manufacturing systems. The approach has been successful on two-dimensions. First, the hierarchical framework is attractive to practitioners as evidenced by the several applications that have been reported. Second, considerable amount of research has been generated in developing appropriate models and solution methods.