Multi-period aggregate production planning in a news-vendor framework

K Kogan () and V Portougal
Additional contact information
K Kogan: Bar Ilan University
V Portougal: University of Auckland

Journal of the Operational Research Society, 2006, vol. 57, issue 4, 423-433

Abstract: Abstract The paper focuses on the control decisions in the area of multi-period, aggregate production planning. The plan consists of a number of sequential planning periods stretching out to a particular time horizon. Owing to machine downtime, quality, supply, and maintenance problems, true productivity differs from the expected. Therefore, at the end of each planning period, the planner must have immediate feedback about production outcome. The results are analysed for variations from the plan (shortfalls or surpluses) and any differences are used to modify subsequent plans. The goal is to minimize the expected total costs including productivity, overtime as well as over- and under-production costs. Although the presented solution is generally not of base-stock type, a correspondence between it and the solution of the classical newsboy problem is revealed. This paper was developed during a consultation assignment in the food industry where the planning results were tested, and the case is presented.

Keywords: production planning; control; stochastic processes; newsboy problem (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1057/palgrave.jors.2602002 Abstract (text/html)
Access to full text is restricted to subscribers.

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:pal:jorsoc:v:57:y:2006:i:4:d:10.1057_palgrave.jors.2602002

Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/41274

DOI: 10.1057/palgrave.jors.2602002

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald and Jonathan Crook

More articles in Journal of the Operational Research Society from Palgrave Macmillan, The OR Society
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().