Practical production scheduling with capacity constraints and dynamic demand: Family planning and disaggregation

In this article, the results of a finite capacity production planning and lot-sizing system developed for Welch’s, a make-to-stock food manufacturer, will be presented. The system accounts for demand forecast error and bias, specified customer service level, production capacity limits, and setup and holding costs. The authors illustrate the use of this new system with actual data for a manufacturing line with 14 end items, grouped into four families.