Abstract
This paper presents a simulation based analysis of different coordination mechanisms in Hierarchical Production Planning. According to the results of the simulations the effects of Aggregation and Capacity Assignments on the overall costs are discussed.
Highlights
Most modern Production Planning Concepts inherit a hierarchical planning approach
The splitting of a simultaneous production planning approach leads to the reduction of complexity and allows the consideration of organizational structures within the system.[1]
The use of mathematical models for Production Planning is limited by the complexity of the models that have to be solved
Summary
Most modern Production Planning Concepts inherit a hierarchical planning approach. The splitting of a simultaneous production planning approach leads to the reduction of complexity and allows the consideration of organizational structures within the system.[1]. The resulting solutions are usually of poor quality, as the heuristics neglect important constraints of the problem Because of these problems a hierarchical planning approach is used to approximate the optimal solution of a model that combines Master Planning and Lot Sizing. These steps in Production Planning are frequently used, but up till almost no scientific simulations have shown how to use information or results from one level in the other in order to find a better global solution of the planning process. For this purpose a system of models, including mechanisms for coordination, is developed and the performance of the system as well as the quality of the results provided by the system are evaluated by simulations
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