Production planning is the process of translating customer orders to jobs for the manufacturing plant with attached due dates.
Theory and Application
The production planning is not an isolated function and its role is not only the production of a plan for the operations management function. Production planning is interrelated and dependant by the information coming from marketing, coordinated with the functions of manufacturing, engineering, finance, and materials.
The Planning Hierarchy
Production planning problems can be grouped in terms of detail level and temporal horizon. In these settings aggregate production planning, production scheduling, and production control problems can be configured. At the first stage, problems arise to the decision of the quantity to produce for each product on weekly basis, while the sequence of operations in daily basis is considered as a problem in the second stage. The production control is instead characterized by real-time decisions.
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