ABSTRACT
In this chapter, a planning hierarchy is developed to establish the relationship between the loading, routing and part grouping problems. Then, mathematical models for these problems are developed such that the formulations preserve the relationship between them. The five setup problems K. E. Stecke identifies, namely; machine grouping, loading, part grouping, resource allocation, and production ratio, need to be solved before production can begin. The drawback is the computational difficulty and prohibitive time required to solve realistic flexible manufacturing systems (FMS) problems. The aggregate planning phase establishes the relationship between FMS and plant wide production planning needs. This production plan is then disaggregated into time phased requirements for each part type. The minimum cost objective derived for the two most important criteria desired by the FMS users. They are due date satisfaction, and efficient system utilization. Efficient utilization of the system is achieved by minimizing inventory and satisfying production demand as early as possible.
