Simulation of robust hierarchichal production planning

This paper presents a simulation analysis on the effects of robust master production scheduling. Up to now, relatively highly aggregated planning models for robust master production scheduling were regarded and the realizability of the planning results was not considered. This paper analyses a more detailed model for master production scheduling than in previous works. The evaluation of the planning results is made by providing the planning results to the subsequent planning levels in a hierarchical production planning system and realizing them in a realistic production system. The primary objective of the production system is to minimise tardiness of customer order deliveries. The secondary objective is to minimise inventory of end products. It is shown that robust master production scheduling in such a planning system leads to significant reductions of tardiness of customer order shipment. Compared to an equivalent deterministic approach for master production scheduling, the mean customer order backlog is reduced more than the mean inventory levels are increased.