Research

year 2000 
author Dosung Go 
Keyword supply chain planning, decentralized manufacturing system, multi-plant coordination, closed-loop hierarchical planning, lot-sizing 
Abstract As globalization of a manufacturing company is going on, company cannot manufacture whole part of a product any longer. So more and more companies have relation to other manufacturer, distributor and supplier. The need to pursue the efficiency of the whole supply chain is increasing.
This paper deals with multi-plant lot-sizing problem which could happen on decentralized manufacturing system of supply chain. Each manufacturing system should meet independent demand and dependent demand, and transportation method exist among the manufacturing systems. This problem considers setup cost, inventory holding cost, transportation cost and time as a decision factor.
This paper decompose the multi-plant lot-sizing problem into planning problem of the whole supply chain and lot-sizing problem of each manufacturing system. Planning problem become pure linear programming which could be solved easily, this result is used as a goal of a lot-sizing problem, which could be

solved by any method and then constant representing the lot-sizing problem in planning problem is updated. This procedure is repeated(could be called as a closed-loop hierarchical planning) Through the experiment, simple hierarchical planning and closed-loop hierarchical planning are compared to optimal solution.
This paper presents method which solve production planning of the decentralized manufacturing systems, the method is expected to be used in other areas. 
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