Hierarchical production planning for consumer goods.

*(English)*Zbl 0685.90049Summary: The mathematical logic behind a hierarchical planning procedure is discussed. The planning procedure is used to derive production volumes of consumer products. The essence of the planning procedure is that first a commitment is made concerning the production volume for a family of similar products and in a second stage the committed production volume is allocated among the products within the product family. A computationally attractive procedure is developed to compute the aggregate production volume and the allocated quantities, such that some target customer service level is achieved. The procedure is based on a combination of exact reasoning, approximation schemes and empirical findings. Numerical results showing the excellent performance of the procedure are included.

##### MSC:

90B30 | Production models |

90B05 | Inventory, storage, reservoirs |

90C90 | Applications of mathematical programming |

93A13 | Hierarchical systems |

##### Keywords:

multiple products; decomposition; approximation; hierarchical planning; target customer service level
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\textit{A. G. de Kok}, Eur. J. Oper. Res. 45, No. 1, 55--69 (1990; Zbl 0685.90049)

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##### References:

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