Hierarchical production planning at a multiproduct multiprocessor fibreglass manufacturing facility

Abstract

Abstract. A hierarchical production planning model is developed for a forming facility of a major fibreglass manufacturer. The model establishes aggregate quarterly quantities for families of products, monthly disaggregate production quantities for end-items within these families, and a weekly sequencing schedule of end-items. A key feature of the planning system is its ability to decompose total set-up cost into primary and secondary components and to account appropriately for each component at a distinct level of the planning hierarchy. The mathematical programming formulations, the accompanying solution algorithms, and the results of their application to nine months of actual company demand and cost data are presented.