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This paper considers the modelling and simulation of a hierarchical production-flow control system. It uses a continuous control approach for machine capacity allocation at the design level and real time scheduling at the shop-floor level. Particularly, at the design level, the control of machine throughput has been addressed by a set of distributed and supervised fuzzy controllers. The objective is to adjust the machine's production rates in such a way that satisfies the demand while maintaining the overall performances within acceptable limits. At the shop-floor level, the problem of scheduling of jobs is considered. In this case, the priority of jobs (actual dispatching times) is determined from the continuous production rates through a discretisation procedure. A case study demonstrates the efficiency of the proposed methodology through a simulation case study.