Topic: Integrated production planning and control

Planning is the primary managerial function for enterprises, which is the direction and instruction to coordinate and
cooperate the enterprise’s overall operation. Only with powerful planning function, shall the business and production
operation go smoothly with the instructions given. Enterprise Resource Planning,which is also known as ERP, is the
most popular resource management system at present. ERP, originated as an extension of Material Requirements
Planning (MRP) developed in 1960s, is a management and control system with planning as the dominant function,
facing overall resources of enterprises, which has become the leading system of production planning arrangements
and resource management for many manufacturing enterprises. However, with decades of developments in the
management thoughts and philosophies of ERP, the traditional calculation methods of MRP is the implementation
foundation for ERP and the planning system as shown in Figure 1 (Liu, Zhou & Liu, 2001).
There are five tiers in the planning management of ERP, including business planning, sales and operational planning,
master production schedule, material demand planning and capacity planning ERP and the contents of which are
6/5/2021 Integrated production planning and control: A multi-objective optimization model | Wang | Journal of Industrial Engineering and Management 2/9
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ranged from macro-prospective to micro-prospective, from tactical to strategic and from rough to detailed. Every
planning centers the basic contradiction between supply and demand and the harmonies among the plans in each tier
are achieved through the feedbacks. The major disadvantages existed in this planning system are: (1) Lack of overall
optimization mechanism. The optimization in the planning system only focuses on the planning in each tier and the
harmonies among the plans in each tier depend on the feedback mechanism, which will be done manually, while the
overall optimization proposal cannot be given automatically. This is also the most criticized part of ERP (Jia, Liao,
Wang & Shen, 2002). (2) The disconnection between material demand planning and capacity demand planning, which
are not considered in the unified framework. Material demand planning is calculated based on the unlimited capacity
and fixed production lead time, which cannot assure the feasibility of the calculated capacity result. The result of the
material demand planning will be the input of capacity demand planning, so the calculation can only be checked
passively, while optimization suggestion will be not given and only manual adjustment can be applied when over
loaded. (3) Only material and capacity are put into considerations to determine whether it is reasonable to make the
production planning arrangements, but other performance management objectives in the manufacturing process are
not brought into the examination scope. In the situation with customers’ needs changing rapidly and daily production
management getting more and more complicated, the above mentioned disadvantages are getting even more
prominent and the conventional ERP planning model cannot adapt the changing needs more and more.

Pages: 6 Double spaced(1650 words)
Style and sources: APA7, 1 source
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Study level: Master
Assignment type: Power Point Presentation
Subject: Business and Economics
Language: US

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