An Analytical Study of Hierarchical Production Plannning System

Abstract

This paper presents a hierarchical approach to plan production in a manufacturing environment that can be modeled in two stages. This paper tries to analyze the interaction mechanisms between the different levels by the following steps : (1) how the length of planning cycle at the detailed planning will affect the shortage of finished products, (2) how the inventory level of part items will affect the frequency of setup, and (3) how the aggregate decisions will affect the average inventory level of finished products. The results may provide the elementary guideline for production planning system.