Aggregate Planning for a Large Food Manufacturer with High Seasonal Demand
AbstractThis study was motivated by the poor inventory management performance in a Brazilian food company with a high seasonal demand. It was clearly recognized that the best inventory management would depend on improvements in demand forecasting and in the production planning process itself. In order to deal with the identified problems, an aggregate production planning model based on linear programming has been developed. The model determines the monthly production rates and inventory levels of finished products as well as the work-force requirements to accomplish productions plans. A simple disaggregating method, which searches for equal run out times, translates the aggregate plans into a detailed master production schedule for a shorter horizon of three months.
With the effective usage of this model, and improvements in the demand forecasting processes, a global reduction of inventory levels of both raw materials and final products can be achieved.
How to Cite
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors must have a written permission from any third-party materials used in the article, such as figures and graphics. The permission must explicitly allow authors to use the materials. The permission should be submitted with the article, as a supplementary file.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) after BJO&PM publishes it (See The Effect of Open Access).