Consistency of the disaggregation process in hierarchical planning
Operations Research
Determining lot sizes and resource requirements: A review
Operations Research
Robust planning and scheduling for automated batch manufacturing systems
Computers and Industrial Engineering
Cyclical schedules for capacitated lot sizing with dynamic demands
Management Science
Robust hierarchical production planning under uncertainty
Annals of Operations Research
Integrating the lot-sizing and sequencing decisions for scheduling a capacitated flow line
Computers and Industrial Engineering
Using the deterministic EOQ formula in stochastic inventory control
Management Science
Making a case for robust optimization models
Management Science
Models for robust tactical planning in multi-stage production systems with uncertain demands
Computers and Operations Research
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In this paper, we propose a robust hierarchical production planning approach for a two-stage real world capacitated production system operating in an uncertain environment. The first stage of the system produces a set of semi-finished products having relatively stable annual demands, and the second finishing stage produces finished products having highly variable weekly demands. The fixed production setup costs incurred at the first stage are considerably high. Fixed production setup costs incurred at the second stage are fairly small compared to those of the first stage. We propose an integrated hierarchical planning model, where semi-finished products from the first stage (i.e. the aggregate level) are disaggregated into finished products to be produced in the second stage (i.e. the operational level). As a result of the relatively stable demands and the high setup costs experienced at the first stage, a cyclical aggregate planning model is proposed for production planning at the upper level of the hierarchical plan. Based on this aggregate plan, a modified periodic review policy is then proposed for production planning at the lower level. Finally, a coupling plan, linking the two planning levels, is proposed to ensure the feasibility of the disaggregation process at every period.