Standard Article

Aggregate Planning

  1. Mike Swihart

Published Online: 14 JAN 2011

DOI: 10.1002/9780470400531.eorms0011

Wiley Encyclopedia of Operations Research and Management Science

Wiley Encyclopedia of Operations Research and Management Science

How to Cite

Swihart, M. 2011. Aggregate Planning. Wiley Encyclopedia of Operations Research and Management Science. .

Author Information

  1. ArrowStream in Logistics Engineering, Chicago, Illinois

Publication History

  1. Published Online: 14 JAN 2011

Abstract

Aggregate planning creates a high level plan that has been simplified by combining a number of entities into a single entity. This article focuses on strategic situations in supply chains where it is used for developing models for many scenarios that inform strategic decisions. The reason why aggregate planning is used is because all details are not required for the solution or it is used where details cannot be included because the construction would be too complex or the time to optimize would be too long in duration.

The mathematical approach behind aggregate planning is a linear program (LP) or a mixed integer program (MIP). This type of problem is well solved. Stand-alone PC-based software is usually employed, this addresses the basic mathematical needs.

There are several areas where problems can arise. The first area is in the application of the mathematics itself. Other areas are in the business processes, the data processes, and the decision processes. These areas are more likely to be the source of challenges than the mathematics.

Keywords:

  • supply chain modeling;
  • data process;
  • strategic aggregate planning;
  • mathematical issues;
  • business process