Disaggregation to a rolling horizon master production schedule with minimum batch-size production restrictions

Abstract

Building on previous research in the area of hierarchical production planning and rolling schedules, this paper is concerned with the disaggregation of aggregate plans to a rolling horizon master production schedule when production lot-sizes require minimum batch-size production. Actual data from a process industry firm is used to test and validate the proposed rolling horizon master production scheduling model. The paper also examines the impact of forecast windows on the performance of a rolling schedule when production quantities of individual product items are based on minimum batch-size production. Results indicate that the model's performance is superior to actual company performance in terms of total cost and increasing the length of the forecast window can increase costs.