Hierarchical production planning and scheduling with random demand and production failure

Hierarchical production planning and scheduling with random demand and production failure

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Article ID: iaor1996109
Country: Switzerland
Volume: 59
Issue: 1
Start Page Number: 259
End Page Number: 280
Publication Date: Sep 1995
Journal: Annals of Operations Research
Authors: ,
Abstract:

A multiple-objective hierarchical production planning and scheduling model is developed that integrates aggregate type decisions, family disaggregate decisions, lot-sizing and scheduling of the jobs. It is assumed that demand and production failure are subject to uncertainties. Stochastic programming with recourse using a constraint sample approximation method is used to incorporate random demand and production failure into the model. The model evaluates final production plans, updates the demand forecasts and proceeds on a rolling horizon manner. Experimental results show that it is sufficient to generate and incorporate into the aggregate type model a small sample of the stochastic constraints from an infinite set of scenarios. A heuristic scheduling algorithm provides detailed information regarding the progress of jobs through work centers. This information is extremely useful in resolving infeasibilities during the production process. Other features of the model are also reported.

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