Strategy not tactics drives aggregate planning

Buxey, Geoff 2003, Strategy not tactics drives aggregate planning, International journal of production economics, vol. 85, no. 3, pp. 331-346, doi: 10.1016/S0925-5273(03)00120-8.

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Title Strategy not tactics drives aggregate planning
Author(s) Buxey, Geoff
Journal name International journal of production economics
Volume number 85
Issue number 3
Start page 331
End page 346
Publisher Elsevier BV
Place of publication Amsterdam, The Netherlands
Publication date 2003-09
ISSN 0925-5273
Summary The aggregate planning model supposedly shows how manufacturers cope with seasonally biased sales. Unfortunately, industry has failed to embrace any of the sophisticated algorithms that were developed to solve the corresponding resources allocation problem. This paper reveals why such methods have proven so unattractive. Aggregate planning is a chimera. In practice, planners construct the master production schedule directly, in line with a preferred production strategy. A “chase” plan is the most popular choice. When this option proves infeasible, management plumps for another predetermined strategy. The resultant stockpiling brings certain financial risks. However, companies take various measures to reduce their exposure.
Language eng
DOI 10.1016/S0925-5273(03)00120-8
Field of Research 150309 Logistics and Supply Chain Management
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2003, Elsevier Science B.V.
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Document type: Journal Article
Collections: Faculty of Business and Law
School of Management and Marketing
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