An integrated approach for modeling uncertainty in aggregate production planning

An integrated solution approach for studying uncertainty in the aggregate production planning problem is proposed. Procedures for evaluating and utilizing the results provided by the integrated solution approach are also presented. This modeling methodology is demonstrated on a multiple-product fixed-workforce example. The example considers three product types, three processes, and 13 planning periods. Uncertainties in selling price, cost, demand, capacity, consumption of capacity, and retention of backorders are modeled, and different capacity levels and demand trends are examined. The solutions provided by a few simplified planning strategies are evaluated and compared for two of the capacity levels. These evaluations and comparisons indicate that a simple control law could provide very robust solutions for this example