The development of a hierarchical rough-cut capacity planning model and demand management system for fishing-net manufacturing

This research develops a demand management system, incorporating a machine-rate model, a rough-cut capacity planning (RCCP) model, and a demand management model for the fishing-net production industry. The machine-rate model is used to calculate a machine workload for the RCCP model to estimate capacity utilisation. The demand management model is important for quick response to customers' demands under a make-to-order (MTO) environment, such as that of the fishing-net production industry which has high variable demand requirements when compared to other industries. The demand management system has been successfully implemented in a fishing-net production company; and a simulation model is used to illustrate its effectiveness for demand management. The results indicate that the average profit per metric ton could increase from US$1,211 to US$1,353, approximately 11.7%. Moreover, the service level would be increased from 80.86% to 97.70%. [Received 11 January 2010; Revised 18 October 2010; Accepted 01 February 2011]