A New Approach to Aggregate Production Planning

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Abstract
This paper proposes a new framework for modelling aggregate production planning problems in which emphasis is placed upon offering the user the flexibility to specify (1) the production options to be employed, (2) the relationships among those options (some of which may be highly situation-specific), and (3) the relevant cost structure. The procedure offered for solving the problem embeds Bowmann's “transportation” approach to aggregate production planning into a large mixed integer programming framework.