Hierarchical production planning system for a two-stage process

Abstract

This paper deals with the problem of designing a hierarchical production planning system, where higher level decisions impose constraints on lower level decisions. This paper supports the choice of a production planning system for a two-stage process. First, analytical models clarify the relationship between production planning rules and the role of buffer inventory level in terms of manufacturing performance. Second, from the results of the analysis, a numerical example is presented on a production planning system designed under various management policies.