Chapter 7 An overview of production planning

Publisher Summary This chapter discusses practical problems related to the use of OR tools for production planning. The chapter reviews production planning, in which at least one of the following three items is viewed in an aggregated manner: production facilities, products, or time unit. There are several plans made at different levels of aggregation, using different planning horizons. Thus, many different models have been discussed. Several different production-planning environments and the type of models that are appropriate have been analyzed. A plethora of recent optimization-type models for production planning has been reviewed. Production planning must determine the planned level of production for each aggregate product category, in each time period during the planning horizon. Hierarchical production planning research analyzes ways to develop a set of models often including an aggregate planning model, so that the output from a higher level model provides good (or even optimal) input to the lower planning level. The three different levels production plannings––production planning, master production scheduling, and material and capacity (detailed) plans––have been discussed in the chapter.

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