Aggregate planning today

Work Study 04/1995; 44(3):4-7. DOI: 10.1108/00438029510085339

ABSTRACT A firm must plan its manufacturing activities at a variety of levels
and operate these as a system. Aggregate planning is medium-range
capacity planning which typically covers a time horizon of anywhere from
three to 18 months. The goal of aggregate planning is to achieve a
production plan which will effectively utilize the organization's
resources to satisfy expected demand. Planners must make decisions on
output rates, employment levels and changes, inventory levels and
changes, back orders, and subcontracting. Aggregate planning determines
not only the output levels planned but also the appropriate resource
input mix to be used.

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    ABSTRACT: Among existing aggregate production planning (APP) approaches, the spreadsheet solver approach is found to be the most applicable for industries due to the following reasons: (1) the solver on spreadsheet software is readily available on virtually all personal computers, (2) the APP model is relatively easy to formulate in a spreadsheet format, and (3) the results are easy to interpret. This paper presents an APP model and a guideline to develop an optimal aggregate production plan using the spreadsheet solver approach. A manufacturing case study is presented to demonstrate how the guideline can be applied. The developed APP model is also evaluated whether it is satisfactory and can lead to immediate implementation.
  • [Show abstract] [Hide abstract]
    ABSTRACT: This paper presents the aggregate production planning for multiple product types where the worker resource can be transferred among the production lines. A mathematical model was formulated in spreadsheet format. Then the spreadsheet-solver technique was used as a tool to solve the model. A real situation of a manufacturing company was selected as a case study. The actual data was used to test and validate the proposed model. The optimal aggregate production plan provides the information on managing the available production capacity together with the useful workforce transferring plan. The obtained solutions were compared to those of another approach where the workers cannot be transferred among the production lines. The total cost is significantly reduced when the workers are allowed to transfer among the production lines.
    Production Planning and Control 07/2003; 14(5):447-458. · 0.60 Impact Factor
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    ABSTRACT: In today's business environment where workers' participation and teamwork have been widely adopted, it is not desirable to employ a layoff and hiring strategy to solve the problems of changing demand because of its negative impact on job security and workers' moral. In this paper, an aggregate production planning model that considers the level of employment as a constant over time is constructed. In addition to deriving the model mathematically, actual data from a Portuguese building material company are used to demonstrate the implementation of such a model. The solution provided by the model could reduce the total relevant cost of the company by as much as 8.1%.
    International Journal of Production Research 06/2000; 38(9):2143-2152. · 1.32 Impact Factor


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