A method for the hierarchical planning of the structure,dimension and material requirements of manufacturing systems

Growing competition creates pressure among companies to run their production in a cost-optimal way and yet adapt immediately to changes in their environmental conditions. Decisions must always consider the integration of the companies in globalised markets on both the demand and supply side. This paper deals with the optimal planning of decisions concerning the structure and dimension of production facilities. The methods used for material requirements planning are selected and configured according to these decisions. These decision problems are represented in the form of four hierarchically layered partial models, each of them realised and iteratively solved by a mathematical optimisation model. The hierarchical planning method is evaluated using a practical case example based on a valve production system of a manufacturing company.