A hierarchical decision support system for production planning (with case study) (original) (raw)
1998, European Journal of Operational Research
In this paper, a hierarchical planning syste m is proposed which integrates aggregate capacity planning with M RP. This syste m is to be im plem ented in a m etal box m an ufactu ring com pany which has already installed a m ulti-user M RP syste m covering m an ufac turing activities as well as procurem ent sales order processing an d accountin g system s. The hierarchical planning system includes a m edium -range aggregate plann ing m odel adapted to the ® rm 's requirem ents and strateg ies. The m odel consists of a m ath ematical form ulation which covers labour capacity constrain ts an d includes certain cost estim ations in the objective fu nction. The planning horizon of the m edium range planning is taken as tw elve m onths in order to cover sales seasonality. The aggregate production quantitie s resulting from th e optim ized m edium -range planning m odel are disaggregated according to procedures already found in th e literature. Furtherm ore, the th eoretical infeasibilities pertaining to th e disaggregation procedures are also resolved in an heuristic m ann er. Using the latte r m odi® ed disaggregation procedure, a feasible disaggregated plan is generated for th e whole planning horizon. Th e proposed plan is com pared with the current production policy of the ® rm and it is observed that the proposed plan leads to backorder reduction. N U È K ET YETIS Ë has a BSc. in chem ical engineering, M BA in operations m anagem ent and PhD in industrial engineering. D r Yetis Ë has worked for th e Marm ara Research Institu te. She is currently at the In dustrial Engineering Departm ent of Marm ara U niversity where she has also established th e E ngineering M an agem ent G raduate Program an d th e C IM centre for th e Faculty of Engineering. H er research interests include engineering and technology m anagem ent, R& D m an agem ent, C IM , M RP II an d TQ M .
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