Multiproduct Production Scheduling at Owens-Corning Fiberglas

To address production-scheduling decisions at Owens-Corning Fiberglas at three distinct levels---aggregate planning, disaggregate planning, and job scheduling---a three-phase hierarchical model was developed. A production-switching rule is used to determine aggregate inventory levels, production levels, and work-force levels. Lot sizes, line assignments, and inventory levels are determined for individual products via linear programming. Final job sequencing is accomplished by use of an efficient heuristic. Implementation of the model has resulted in annual savings of over $100,000 during the first two years of operation.