A MATHEMATICAL MODEL FOR AGGREGATE PRODUCTION PLANNING

Abstract

For any organization, an effective utilization of available resources is a prerequisite of success. The aggregate production planning is a complex process through which the most efficient utilization of resources is sought within the given constraints imposed by environment and management policies. Thus, the economic significance of an effective production planning for the firm as well as for the nation as a whole has been well recognized.

The most difficult problem in aggregate production planning is the change in demand over time. The fluctuations in demand can be absorbed by adopting one or a combination of the following strategies