An Aggregate Production Planning Model Incorporating Dynamic Productivity: Part II. Solution Methodology and Analysis

Abstract

In Part I in a previous issue, the authors developed a procedure for incorporating dynamic productivity considerations into aggregate planning models. However, the dynamic cost functions of these models result in heterogeneous decision systems which are difficult to solve. In this article a solution methodology is discussed that was developed for dynamic aggregate planning models. In addition, the results from using a dynamic productivity aggregate planning model are analyzed. It is concluded that dynamic productivity can be significant; incorporating these considerations into a model can provide more realistic results.