Modeling an aggregate production planning
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abstract
Production planning is an essential and complex activity inside any company which requires simultaneous cooperation between everyone responsible for the decision-making process. Most of the time, small companies cannot afford to customize, implement and train people to use an Advanced Planning and Scheduling (APS) software that is available in the market. Thus, one feasible soluion for these companies is to develop their own simplified tools to support the decision-making process. When solving problems involving medium-term planning, more specifically aggregate production planning, it is possible to create an integer linear programming (LP) mathematical model and use it to find the optimal solution.
This paper aims to present and discuss the benefits that small- and medium-sized companies can get when using mathematical programming to help in the decision-making process regarding aggregate production planning. The aggregate plan is concerned with determining the quantity of a good or a family of goods to be produced and also scheduling its production for the medium-range period, in which the main objective is to meet forecast demand while minimizing costs. To exemplify an aggregate production planning problem, a simplified model of a real company, considering four months, was proposed. Future developments should improve the model to consider other data such as inventory management and costs; raw material storage and logistics; employee costs, contracting and subcontracting and overtime.
This work has been supported by FCT - Fundação para a Ciência e Tecnologia within the Project Scope: UIDB/05757/2020
This work has been supported by FCT—Fundação para a Ciência e Tecnologia within the Project Scope: UIDB/05757/2020.
