Allocating limited manufacturing resources to achieve a feasible
production plan that is consistent with customer demand is a difficult
and common problem faced in many manufacturing industries. For
large-scale multi-stage manufacturing systems, existing methods are
typically based either on allocating limited resources sequentially,
according to a priority ranked list of production starts, or linear
programming based models. The output of such planning models is a
production plan which specifies the quantity of each part to produce at
each plant, using resources available to the enterprise. Typically there
are lot-sizing rule defining the permissible production start quantities.
The invention disclosed herein is a method for applying these rules to
the lot-sizing of production starts within a linear program. It employs
advanced heuristics that consider both established operational objectives
(e.g. customer service, short lead times, low inventory, and prioritized
allocation of supply and capacity) and lot-size rules to efficiently
compute a feasible production plan for the division.