Hierarchical production planning systems in a multi-product environment

To solve the problem of Hierarchical Production Planning (HPP) with sequence-dependent setup in a multi-product environment, a two-tiered model, including Aggregate Production Planning (APP) and Family Disaggregation Planning (FDP), was proposed. The APP model was aimed to obtain the aggregate production plan of each product type in each period. In FDP model, the APP was disaggregated into the specific lot sizing plan and schedule for each product family. In order to avoid the infeasibility due to longer adjustment time for various product families, the extra costs arising from the adjustment of APP were integrated into the objective function of FDP model so as to obtain the optimal adjustment plans. The performance of the adjustment was validated with data from a mould manufacturing enterprise. The proposed HPP model reduced the solution scale compared to the monolithic approach and realized more cost savings than traditional HPP models.