A hierarchical production plan for a make-to-order steel fabrication plant

A three-tiered hierarchical production plan for a strictly make-to-order steel fabrication plant with the objective of developing a production plan and master schedule for a set of product archetypes is implemented. Data are collected from an actual steel fabrication plant located in the Midwestern section of the US. An aggregate linear programming model, a non-linear disaggregate model and a master production schedule comprise the respective tiers. Appropriate models provide the forecasts needed in the first two tiers. A production plan and master schedule based on data collected at the plant, benefits expected for its implementation and practical limitations are reported.