Replanning timing in hierarchical production planning

Abstract In this paper we discuss the relationship between the timing for replanning and the buffer inventory in terms of system performance in a multistage production system, where there are multiple opportunities for replanning within the accumulated production lead time. Two performance measures are used: the unfilled rate for market demand (α) and the rate of change in production quantity due to replanning (β). The results obtained through simulation study yield a basis for choosing a replanning rule.