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Enhancing Aggregate Production Planning with an Integrated Stochastic Queuing Model

In: Operations Research Proceedings 2011

Author

Listed:
  • Gerd J. Hahn

    (Catholic University of Eichstaett-Ingolstadt)

  • Chris Kaiser

    (Catholic University of Eichstaett-Ingolstadt)

  • Heinrich Kuhn

    (Catholic University of Eichstaett-Ingolstadt)

  • Lien Perdu

    (Catholic University of Leuven)

  • Nico J. Vandaele

    (Catholic University of Leuven)

Abstract

Mathematical models for Aggregate Production Planning (APP) typically omit the dynamics of the underlying production system due to variable workload levels since they assume fixed capacity buffers and predetermined lead times. Pertinent approaches to overcome these drawbacks are either restrictive in their modeling capabilities or prohibitive in their computational effort. In this paper, we introduce an Aggregate Stochastic Queuing (ASQ) model to anticipate capacity buffers and lead time offsets for each time bucket of the APP model. The ASQ model allows for flexible modeling of the underlying production system and the corresponding optimization algorithm is computationally very well tractable. The APP and the ASQ model are integrated into a hierarchical framework and are solved iteratively. A numerical example is used to highlight the benefits of this novel approach.

Suggested Citation

  • Gerd J. Hahn & Chris Kaiser & Heinrich Kuhn & Lien Perdu & Nico J. Vandaele, 2012. "Enhancing Aggregate Production Planning with an Integrated Stochastic Queuing Model," Operations Research Proceedings, in: Diethard Klatte & Hans-Jakob Lüthi & Karl Schmedders (ed.), Operations Research Proceedings 2011, edition 127, pages 451-456, Springer.
  • Handle: RePEc:spr:oprchp:978-3-642-29210-1_72
    DOI: 10.1007/978-3-642-29210-1_72
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