Hierarchical Production Planning with Part, Spatial and Time Aggregation

A hierarchical approach to planning production in complex manufacturing systems is presented. A single facilitg containing a number of work-centers that prvduce multiple part types is considered. The planning horizon includes a sequence of time periods, and the demand for all part types is assumed to be known. The production planning problem consists of minimizing the holding costs for the work-in-process and finished goods inventory and the backlogging costs for unfulfilled demand. We present a tuo-level hienrrchy that is based on aggregating part types to part families, work-centers to manufacturing cell9 and time periods to aggregate time periods. The solution of the aygreyate optimization problem is imposed as a turget in the optimization problems ut the detailed level. This urrhhitecture uses a rolling horizon strategy to manage production.