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PDF versus LP: An empirical aggregate planning comparison
Author(s) -
Holt Jack A.
Publication year - 1983
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/0272-6963(83)90018-9
Subject(s) - aggregate planning , time horizon , operations research , heuristic , aggregate (composite) , production (economics) , computer science , production planning , range (aeronautics) , linear programming , operations management , economics , mathematical optimization , microeconomics , mathematics , engineering , materials science , algorithm , artificial intelligence , aerospace engineering , composite material
Production Decision Framework (PDF) is a recently introduced heuristic method for solving the aggregate planning problem. The algorithm was developed and tested over a wide range of deterministic demand patterns and cost parameters. The decision by Wayn‐Tex Inc., to adopt the methodology provided a real world opportunity to evaluate the performance of PDF under uncertainty over a one year's operating period. This paper concentrated on a study of (1) the effectiveness of the model in selecting a suitable rolling planning horizon, and (2) the performance of PDF as compared to a linear program solution using the same length horizon. The monthly sales forecast used in the study, developed by the sales department, took into consideration trend, seasonality, and known market conditions. The results were gratifying. Management has indicated their desire to continue using PDF as a guide in the production planning process through the use of the computerized program available.