Aggregate planning linear programming

Wallace TF (ed) (1992) APICS Dictionary, 7th edn. American Production and Inventory Control Society, Falls Church VA Wang R, Liang T (2004) Application of fuzzy multi-objective linear programming to aggregate production planning. Computers Industrial Engineering 46 17-41... 

Use Linear Programming to perform aggregate planning to decide the production and material requirements et al. Convert raw material into products according to production plan. 

There are a few options of capacity optimization open to a manager and there are proven processes to assist him or her. One such process is aggregate planning where an organization determines levels of capacity, production and inventory over a planning horizon to maximize the profit. The optimization can be attempted either in theory by a mathematical model (e.g. linear programming) or in practice by a cross-functional continuous review process (e.g. sales and operational planning, S OP). Our preferred and practical option is S OP which is covered in Chapter 18. 

In the next section, we explain how to implement the linear programming methodology for aggregate planning using Microsoft Excel. 

Next we discuss how to generate the aggregate plan for Red Tomato in Table 8-4 using Excel. We first do so by building a simple spreadsheet that allows vv/raM/analysis and then build a more sophisticated model that allows optimization using linear programming. 

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