Optimum production planning: an analytic framework

Presents an analytic framework for processing planning in industries where fixed batch sizes are common. The overall optimum processing plan is shown to be located on an envelope between the optimum JIT plan and the optimum level plan. These concepts provide the framework for understanding the overall optimum plan, and the framework leads to an efficient heuristic. The approach is practical, illustrated by a case study from the food industry, which shows the place of overall optimum planning within the company’s planning system and its implications for company performance.