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A hierarchical production plan for a make-to-order steel fabrication plant
Authors:Brian D. Neureuther  George G. Polak  Nada R. Sanders
Affiliation:1. School of Business, Analytical Department , Indiana State University , Terre Haute, IN 47809, USA;2. Department of Management Science and Information Systems , Wright State University , Dayton, Ohio 45435, USA E-mail: gpolak@wright.edu;3. Department of Management Science and Information Systems , Wright State University , Dayton, Ohio 45435, USA E-mail: nsanders@wright.edu
Abstract:A three-tiered hierarchical production plan (HPP) 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.
Keywords:Hierarchical production planning  scheduling  linear programming  production planning
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