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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.

90B30 Production models
90B05 Inventory, storage, reservoirs
90C90 Applications of mathematical programming
93A13 Hierarchical systems
Full Text: DOI
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