Abstract
Production Planning for multi-product CIM systems is a simple problem to identify but very difficult to solve optimally. This problem is generally concerned with the specification of the number of units to be produced from each item for a forthcoming planning horizon, so that a total demand is fulfilled while operational costs are minimized (or equivalent profit is maximized). One of the major difficulties that complicates the problem is that the production subsystem is only one part of the whole process of supply, manufacturing, promotion and distribution of products to the end-customers. Interactions of production with other elements of the system can be easily identified. For example, the production-inventory relationship is well known. Setting appropriate inventory levels is a major issue in aggregate planning. However, aggregate production decisions also generate constraints for purchase, transportation and distribution. The whole process is also related to other functions, among which marketing plays a vital role. Clearly promotional activities influence the inventory control system and conversely a new inventory control system may affect the demand pattern that faces a manufacturing company.
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Kapsiotis, G., Tzafestas, S. (1994). Hierarchical Control Approach to Managerial Problems for Manufacturing Systems. In: Zaremba, M.B., Prasad, B. (eds) Modern Manufacturing. Advanced Manufacturing Series. Springer, London. https://doi.org/10.1007/978-1-4471-2101-5_7
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