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Hierarchical Production Planning: A Two-Stage System

Gabriel R. Bitran, Elizabeth A. Haas, Arnoldo C. Hax

Operations Research · 1982 · Volume 30 · Issue 2

DOI: 10.1287/opre.30.2.232

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.

Keywords

331 multistage analysis, 359 hierarchical approach to production smoothing

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