Hierarchical production planning in a Make-To-Order company: A case study

In this paper, we analyse a complex production planning problem in a Make-To-Order company, involving quoting due dates, along with production scheduling, some plant layout decisions and line balancing issues. A general framework has been developed that identifies the main levels for decision making, and tackles these problems in a hierarchical fashion, the resulting interactions being carefully taken into consideration. This framework, based on considering discretised planning horizons, is implemented on a Decision Support System developed around an interface specially designed to involve the various participants in the planning process. In practice, the system is composed by a package of software products used as add-ons to the main management information system of the company. A comprehensive and detailed description of the approach, techniques used and developed algorithms is presented. The experience in using a first prototype of the system shows this may become a highly valuable computer tool in production planning, layout design and assignment of orders.