Abstract
The aggregate production planning model aims to match the supply with demand while minimizing the manufacturing or production activity costs. There are many methods in the mathematical programming theory to solve the aggregate production planning problem. This chapter develops a novel decision support system for the aggregate production planning model using the linear programming approach. The aggregate production problem modeled by the linear programming has been coded in R computer programming language, and a novel web application has been developed using Shiny to serve the needs of the production managers. The novel application is adjustable for any production setting and planning horizon for firms in global transitioning.
TopBackground
In economics, the concept of planning refers to the state intervention and the debate around how it intertwines with the global economy has been going on since decades (Kazgan, 2000). In management science, planning refers to the production planning and control activities of a company. This background section aims to explain the definitions of production planning and control along with decision support systems as well as presenting the recent developments in the reviewed scientific literature.
Key Terms in this Chapter
Integrated Development Environment: A type of software that contains all the necessary tools to help the computer programmers create and develop front-end and back-end software in an easy and efficient way.
GNU Linear Programming Kit (GLKP): A free software package to solve large-scale problems of linear and related programming.
Mathematical Programming: A branch of applied mathematics concerned with mathematically representing the optimal allocation of limited resources subject to real-life or abstract constraints to reach a pre-defined objective.
Overtime: Time that is worked by an employee in addition to the regular working hours or the payment received for this extra work.
Stock Out: The situation when the product or service that a client demands is not available in the supplier’s inventory.
Outsource: A practice to issue or contract a part of the work, product, or service to a supplier outside the company, usually as an alternative to in-house production.
Business Analytics: A discipline in the management science that focuses on understanding the business performance and developing strategies. It involves the use of technology, skills, and applications to obtain value from data by analytical modeling and quantitative techniques.