Hierarchical production planning and multi-echelon inventory management

✍ Scribed by W.H.M. Zijm

• Publisher: Elsevier Science
• Year: 1992
• Tongue: English
• Weight: 737 KB
• Volume: 26
• Category: Article
• ISSN: 0925-5273
• DOI: 10.1016/0925-5273(92)90072-f

✦ Synopsis

In this paper we present a framework for the planning and control of the materials flow in a multi-item production system. Our prime objective is to meet a prespecitied customer service level at minimum overall costs. In order to motivate our study we first outline the basic architecture of a logistic control system developed at Philips Electronics. Guided by this exposure, we next describe the basic algorithmic framework which is needed to turn the conceptual ideas into operational procedures. The theory is extended with hierarchical planning procedures recognizing the need to first plan on a product family Ieve before disaggregating into plans for end-items.