Horizon Effects in Aggregate Production Planning with Seasonal Demand

John O. McClain and Joseph Thomas
Additional contact information
John O. McClain: Cornell University
Joseph Thomas: Cornell University

Management Science, 1977, vol. 23, issue 7, 728-736

Abstract: When a demand pattern is dominated by a seasonal effect, the concept of a steady state solution can be used in two ways in aggregate production planning. First, general policy recommendations can be made concerning the use of seasonal workforce changes versus overtime and seasonal inventory. Second, the results can be used to provide ending conditions in an intermediate range planning algorithm with a moving horizon. These ideas are explored using a linear programming model, making use of known planning horizon properties. A simulation experiment tests the efficacy of short horizon deterministic models in a stochastic environment, and demonstrates that ending conditions, derived from the steady state model, improve decisions under a variety of conditions on costs and horizon length.

Date: 1977
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.23.7.728 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:23:y:1977:i:7:p:728-736

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().