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AggregatePlanning-Single-Product-Model - Aggregate Planning...

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Aggregate Planning using LP First some notation T # of periods in the planning horizon, t = 1 , . . . , T D t Demand in period t n t units/worker [days*(units/worker-day)] The costs associated are (for period t ) C P t production/unit C W t wage/worker C H t hiring/worker C L t lay o±/worker C I t holding/unit C B t backorder/unit Decision variables are P t amount produced in period t W t # of workers H t # of workers hired L t # of workers laid o± I t # of units held in inventory B t # of units backordered 1
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Objective function to minimize the total cost is given by min T X t =1 ( C P t P t + C W t W t + C H t H t + C L t L t + C I t I t + C B t B t ) Constraints can be in several types. You just model whatever properties you want in the solution (of course they should be feasible or not conFicting) The following must be included We can not produce more than the capacity. Thus for each period, we have P t n t W t , t = 1 , . . . , T, period-to-period change in the # of workers
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AggregatePlanning-Single-Product-Model - Aggregate Planning...

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