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

Authors: Chiung-Hsi Hsieh; Taho Yang; Chao-Ton Su; Cheng-Han Lin

Addresses: Institute of Manufacturing Information and Systems, National Cheng Kung University, Tainan 701, Taiwan. ' Institute of Manufacturing Information and Systems, National Cheng Kung University, Tainan 701, Taiwan. ' Department of Industrial Engineering and Engineering Management, National TsingHua University, Hsinchu 300, Taiwan. ' Institute of Manufacturing Information and Systems, National Cheng Kung University, Tainan 701, Taiwan

Abstract: 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]

Keywords: demand management; fishing net manufacture; rough-cut capacity planning; RCCP; simulation; optimisation; industrial engineering; machine rate; fishing nets; make-to-order; MTO.

DOI: 10.1504/EJIE.2012.047664

European Journal of Industrial Engineering, 2012 Vol.6 No.4, pp.422 - 440

Published online: 10 Sep 2014 *

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