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Hierarchical production planning for consumer goods. (English) Zbl 0685.90049
Summary: 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
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