IDEAS home Printed from https://ideas.repec.org/a/aes/infoec/v16y2012i2p14-18.html
   My bibliography  Save this article

Hierarchical Planning Methodology for a Supply Chain Management

Author

Listed:
  • Virna ORTIZ-ARAYA
  • Víctor M. ALBORNOZ

Abstract

Hierarchical production planning is a widely utilized methodology for real world capacitated production planning systems with the aim of establishing different decision–making levels of the planning issues on the time horizon considered. This paper presents a hierarchical approach proposed to a company that produces reusable shopping bags in Chile and Perú, to determine the optimal allocation of resources at the tactical level as well as over the most immediate planning horizon to meet customer demands for the next weeks. Starting from an aggregated production planning model, the aggregated decisions are disaggregated into refined decisions in two levels, using a couple of optimization models that impose appropriate constraints to keep coherence of the plan on the production system. The main features of the hierarchical solution approach are presented.

Suggested Citation

  • Virna ORTIZ-ARAYA & Víctor M. ALBORNOZ, 2012. "Hierarchical Planning Methodology for a Supply Chain Management," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 16(2), pages 14-18.
  • Handle: RePEc:aes:infoec:v:16:y:2012:i:2:p:14-18
    as

    Download full text from publisher

    File URL: http://www.revistaie.ase.ro/content/62/02%20-%20Ortiz.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fleischmann, B. & Meyr, H., 2003. "Planning Hierarchy, Modeling and Advanced Planning Systems," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 36714, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tom Vogel & Bernardo Almada-Lobo & Christian Almeder, 2017. "Integrated versus hierarchical approach to aggregate production planning and master production scheduling," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(1), pages 193-229, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alarcón, F. & Alemany, M.M.E. & Ortiz, A., 2009. "Conceptual framework for the characterization of the order promising process in a collaborative selling network context," International Journal of Production Economics, Elsevier, vol. 120(1), pages 100-114, July.
    2. Ton de Kok & Fred Janssen & Jan van Doremalen & Erik van Wachem & Mathieu Clerkx & Winfried Peeters, 2005. "Philips Electronics Synchronizes Its Supply Chain to End the Bullwhip Effect," Interfaces, INFORMS, vol. 35(1), pages 37-48, February.
    3. Quante, R. & Fleischmann, M. & Meyr, H., 2009. "A Stochastic Dynamic Programming Approach to Revenue Management in a Make-to-Stock Production System," ERIM Report Series Research in Management ERS-2009-015-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    4. Annika Becker & Raik Stolletz & Thomas Stäblein, 2017. "Strategic ramp-up planning in automotive production networks," International Journal of Production Research, Taylor & Francis Journals, vol. 55(1), pages 59-78, January.
    5. Tian, Feng & Willems, Sean P. & Kempf, Karl G., 2011. "An iterative approach to item-level tactical production and inventory planning," International Journal of Production Economics, Elsevier, vol. 133(1), pages 439-450, September.
    6. Vogel, Sebastian & Meyr, Herbert, 2015. "Decentral allocation planning in multi-stage customer hierarchies," European Journal of Operational Research, Elsevier, vol. 246(2), pages 462-470.
    7. Masoud Chitsaz & Jean-François Cordeau & Raf Jans, 2019. "A Unified Decomposition Matheuristic for Assembly, Production, and Inventory Routing," INFORMS Journal on Computing, INFORMS, vol. 31(1), pages 134-152, February.
    8. Brusset, Xavier & Teller, Christoph, 2017. "Supply chain capabilities, risks, and resilience," International Journal of Production Economics, Elsevier, vol. 184(C), pages 59-68.
    9. Scheller, Christian & Schmidt, Kerstin & Spengler, Thomas S., 2023. "Effects of network structures on the production planning in closed-loop supply chains – A case study based analysis for lithium-ion batteries in Europe," International Journal of Production Economics, Elsevier, vol. 262(C).
    10. Pibernik, Richard & Sucky, Eric, 2007. "An approach to inter-domain master planning in supply chains," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 200-212, July.
    11. Meyr, Herbert & Mann, Matthias, 2013. "A decomposition approach for the General Lotsizing and Scheduling Problem for Parallel production Lines," European Journal of Operational Research, Elsevier, vol. 229(3), pages 718-731.
    12. Bocca, Felipe Ferreira & Rodrigues, Luiz Henrique Antunes & Arraes, Nilson Antonio Modesto, 2015. "When do I want to know and why? Different demands on sugarcane yield predictions," Agricultural Systems, Elsevier, vol. 135(C), pages 48-56.
    13. Malte Meistering & Hartmut Stadtler, 2020. "Stabilized-cycle strategy for a multi-item, capacitated, hierarchical production planning problem in rolling schedules," Business Research, Springer;German Academic Association for Business Research, vol. 13(1), pages 3-38, April.
    14. Jonsson, Patrik & Kjellsdotter Ivert, Linea, 2015. "Improving performance with sophisticated master production scheduling," International Journal of Production Economics, Elsevier, vol. 168(C), pages 118-130.
    15. Tom Vogel & Bernardo Almada-Lobo & Christian Almeder, 2017. "Integrated versus hierarchical approach to aggregate production planning and master production scheduling," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(1), pages 193-229, January.
    16. Bernhard Fleischmann & Sonja Ferber & Peter Henrich, 2006. "Strategic Planning of BMW’s Global Production Network," Interfaces, INFORMS, vol. 36(3), pages 194-208, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aes:infoec:v:16:y:2012:i:2:p:14-18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Paul Pocatilu (email available below). General contact details of provider: https://edirc.repec.org/data/aseeero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.