Aggregate planning in crew-loaded production environments

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Abstract

Virtually all existing optimization techniques for the aggregate planning problem incorporate continuous decision variables. However, predetermined shift settings in crew-loaded production operations often require the decision variables to be discrete values. Consequently, currently available optimization methods are not appropriate for discrete production environments. This paper describes an optimal mixed-integer programming formulation for the aggregate planning problem that explicitly specifies discrete variables, thus resulting in feasible workforce levels for crew-loaded production environments. The mixed integer model is compared to the LDR [3, Holt, the Production Switching Heuristic [5, Mellichamp and Love, Mgmt Sci. 24,1242–1250 (1978)] and then to the PSR [4, Oliff and Leong, Decision Sci. 18, 582–597 (1987)]. An application at Owens-Coming Fiberglas is also presented.

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Michael D. Oliff is a Visiting Professor of Operations Management at IMEDE. He received his Ph.D. from Clemson University and served as the Program Chair of both the first and second International Conferences on Expert Systems& the Leading Edge in Production Planning Control. In addition to Computers & Operations Research, Dr Olifs publications appear in journals such as Decision Sciences, IEEE Transactions, Interfaces, International Journal of Production Research, International Journal of Expert Systems, Decision Support Systems, and Production and Inventory Management.

Holly S. Lewis is a faculty member in the management science department at Pennsylvania State University. Her primary research interests include production planning and mathematical programming.

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