Demand Management and Production Control in Process Industries

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Abstract
In a changing and more dynamic market of the 1980s, available mathematical programming algorithms on which production planning in process industries was based did not provide the required responsiveness. Although it is suggested in the literature that a variable cycle times policy will enable the system to react to short‐term demand fluctuations, proposes the use of a fixed cycle times policy. Presents simulation results which show a considerable improvement in service level at a high level of utilization. Presents a three‐tiered hierarchical model which is based on this fixed cycle times policy, which gives insight into the influence that the demand manager has upon the results in the production department. On the other hand, it also reflects the commercial interests. Suggests that for both departments which are this strongly intertwined, a common reference is necessary to improve the general results of the business.