Robust strategies for hierarchical production planning


Sep 2008 - Aug 2011
Hierarchical production planning is widely used in practice, the main reasons being that for mid-term planning less data is available than for short-term planning and that creating a detailed plan over a long time horizon is too time-consuming. Usually the different planning levels are treated separately; it is, however, evident that the dependencies between the planning levels are not negligible. Therefore, considering the dependencies and choosing the right methods could leverage a high potential for improving the planning strategies. In scientific literature numerous papers about planning methods for different levels can be found, many of which are used in practice. But as far as a systematic and extensive treatment of the interdependencies between the planning methods of different decision levels is concerned, little research has yet been done.
For this project a situation typical for automotive suppliers will be used as a test case. The entire planning process from master planning down to the shop floor execution will be investigated, based on a stochastic environment (including market, machines, and workers), and taking into account simultaneously the two divergent objectives costs and service level. For that purpose various hierarchical planning strategies will be implemented and tested using a specially developed simulation environment. Special attention will be paid to the selection and optimization of the planning parameters. In order to obtain a better estimation of the planning strategies’ potential, optimization models for a global planning problem will be developed and their solutions (exact ones for simplified scenarios, good approximations for more complex situations) will be compared to the hierarchical planning strategies with respect to their efficiency. Furthermore, analytical approaches will be developed in order to validate the empirical results, at least for simpler test instances, and to enhance the understanding of the dependencies between a strategy’s parameter values and performance indicators (e.g. costs and service level). The overall goal is to identify robust planning strategies for different production situations.
This study will generate a set of rules for choosing suitable planning methods and parameters depending on the prevailing environmental conditions. Additionally, validity ranges for these choices can be used to determine when a change of planning strategy becomes necessary. This project will deliver an essential contribution to the improvement of the coordination of planning levels in a stochastic environment and represents an important step towards the application of the research results to real-world production planning problems. In the mid-term, the project may help to improve the planning stability of production planning systems used in practice.

Research program

FWF Translational Research

Das Projekt wird im Translational Research Programm durch den FWF Wissenschaftsfonds gefördert.

A. Hübl, H. Jodlbauer, K. Altendorfer - Influence of dispatching rules on average production lead time for multi-stage production systems - INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS, Vol. 144, No. 2, 2013, pp. 479-484 more
H. Jodlbauer, S. Reitner - Material and Capacity Requirement Planning with dynamic lead times - INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH, Vol. 50, No. 16, 2012, pp. 4477-4492 more
A. Hübl, K. Altendorfer, H. Jodlbauer - Effects of WIPCAP and work-ahead-window on the logistic operating curves - Proceedings of the fifth Research Forum of the Austrian University of Applied Sciences, Wien (Favoriten), Austria, 2011, pp. 372-373 more
K. Altendorfer, H. Jodlbauer - An analytical model for service level and tardiness in a single machine MTO production system - INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH, Vol. 79, No. 7, 2011, pp. 1827-1850 more
H. Jodlbauer, S. Reitner - Optimizing service-level and relevant cost for a stochastic mulit-item cyclic production system - INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS, Vol. 136, No. 16, 2011, pp. 306-317 more
K. Altendorfer, S. Reitner, H. Jodlbauer, G. Atzlinger - Cost and Profit Distribution in Value Chains - Proceedings - 1st International Conference on Value Chain Management Steyr 2011, Steyr, Austria, 2011, pp. 339-360 more
A. Hübl, K. Altendorfer, H. Jodlbauer, M. Gansterer, R. Hartl - Flexible model for analyzing production systems with discrete event simulation - Proceedings of 2011 Winter Simulation Conference, Phoenix, United States of America, 2011, pp. 1559-1570 more
K. Altendorfer, C. Engelhardt-Nowitzki, H. Jodlbauer - Two Measures of Production System Flexibility and their Application to Identify Optimal Capacity Investment - Proceedings - 1st International Conference on Value Chain Management Steyr 2011, Steyr, Austria, 2011, pp. 441-461 more
H. Jodlbauer, K. Altendorfer - Trade-off between capacity invested and inventory needed - EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, Vol. 203, No. 1, 2010, pp. 118-133 more