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Production Planning At Different Levels Of Aggregation

  • Oded Maimon
  • Eugene Khmelnitsky
  • Konstantin Kogan
Part of the Applied Optimization book series (APOP, volume 18)

Abstract

This chapter extends the flow control approach to the problems with multiple facilities and either single or multiple products characterized by simple structures. It, thus, deals with an intermediate hierarchical level that bridges aggregate production planning and detailed production scheduling characterized by complex product structures. Specifically, this chapter focuses on a typical problem arising in aggregate production planning and master scheduling — balancing materials and capacity requirements under given production and market conditions. The balancing is accomplished by dividing an aggregate material flow into subflows of specific items and allocating them among multiple manufacturing facilities. The goal of both the production plan and master schedule (in some companies it may be difficult to distinguish between them) is to optimally load the facilities when either initial inventory volumes or input inventory flows are predetermined at higher levels of top-down production planning hierarchy. This goal is achieved by tracking demands for products along a planning horizon in a make-to-order environment, or by filling the stocks with required volumes of products by the end of the planning horizon in a make-to-stock environment.

Keywords

Planning Horizon Inventory Level Output Inventory Input Inventory Backlog Cost 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

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Copyright information

© Springer Science+Business Media Dordrecht 1998

Authors and Affiliations

  • Oded Maimon
    • 1
  • Eugene Khmelnitsky
    • 1
  • Konstantin Kogan
    • 1
  1. 1.Department of Industrial EngineeringTel-Aviv UniversityTel-AvivIsrael

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