Abstract 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.
[1]
Robert K. Zimmer,et al.
A DYNAMIC OPTIMIZATION MODEL FOR PLANNING IN A MULTI-PRODUCT ENVIRONMENT
,
1975
.
[2]
Basheer M. Khumawala,et al.
Simulation Testing of Aggregate Production Planning Models in an Implementation Methodology
,
1974
.
[3]
Jack A. Holt,et al.
A heuristic method for aggregate planning: Production decision framework
,
1981
.
[4]
Kenneth R. Baker,et al.
AN EXPERIMENTAL STUDY OF THE EFFECTIVENESS OF ROLLING SCHEDULES IN PRODUCTION PLANNING
,
1977
.
[5]
W. Clay Hamner,et al.
A COMPARISON OF ALTERNATIVE PRODUCTION MANAGEMENT COEFFICIENT DECISION RULES
,
1975
.
[6]
Sidney W. Hess,et al.
A Linear Programming Approach to Production and Employment Scheduling
,
1960
.
[7]
C. C. Holt,et al.
A Linear Decision Rule for Production and Employment Scheduling
,
1955
.