Linear programming aggregation: A heuristic for hierarchical production planning

The authors present an aggregation/disaggregation approach to hierarchical production planning. They start off with a disaggregate mixed-integer linear programming model which follows a monolithic approach. Based on this disaggregate model the authors use the theory of aggregation in mathematical programming to derive an aggregate production planning model. Through an iterative aggregation/disaggregation procedure they derive models which could be interpreted as planning models in a hierarchical production planning approach. The authors point out the similarities and differences between the present approach and the approach given by Graves.