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A DISCRETE PRODUCTION SWITCHING RULE FOR AGGREGATE PLANNING
Author(s) -
Oliff Michael D.,
Leong G. Keong
Publication year - 1987
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1987.tb01548.x
Subject(s) - aggregate planning , overtime , context (archaeology) , computer science , aggregate (composite) , production (economics) , production planning , operations research , variety (cybernetics) , batch production , interval (graph theory) , material requirements planning , crew , point (geometry) , work (physics) , industrial engineering , operations management , economics , microeconomics , mathematics , engineering , aeronautics , labour economics , mechanical engineering , paleontology , materials science , artificial intelligence , composite material , biology , geometry , combinatorics
Aggregate planning (AP) is a necessary activity for manufacturing and services alike. A shift toward high‐volume batch and continuous flow processes within American manufacturing has given rise to increasing numbers of crew‐loaded facilities. A majority of AP approaches incorporate continuous decision variables and require frequent adjustments to both production and work‐force settings. Despite the availability and diversity of these approaches, few significant applications have been reported. This paper presents the detailed development of a discrete AP switching rule that can be applied to a variety of cost environments. Inventory costs are estimated using an interval approach rather than traditional point estimates. The model allows incorporation of overtime options and is interactive in nature. Decision variables from the model can be disaggregated and linked directly to lower‐level planning activities. Actual results of model implementation are reported. An overview of the model's incorporation into the larger context of hierarchical production planning is found in [21].