Integrated production planning with sequence-dependent family setup times

This paper proposes an integrated optimization model of aggregate production planning (APP), family disaggregation planning, and family scheduling problems in hierarchical production planning (HPP) systems considering sequence-dependent family setup times. The model obtains the optimal production plan for each product type and product family in each period, together with the globally optimal production sequence of product families in all planning periods. The proposed model is tested with randomly generated experimental data consistent with what is prevalent in the manufacturing industry and its results are compared with those of the traditional HPP models. Our results show that the integrated model realizes greater cost savings.