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Aggregate production planning: Column Minima
Procedure
The tableau-method, originally proposed by Bowman (1956), is used for finding
the production plan that minimizes inventory while satisfying all demands and
considering production capacities. Only a single type of capacity is considered
(no overtime, no subcontracting). Initial inventory is zero. This is the easiest
version of the tableau method.
Symbols:
| row |
production
period |
| column
|
demand
period |
Assumptions:
- a single resource type
- no overtime, no
subcontracting
- identical holding costs and identical variable production costs in all periods
Literature:
- Krajewski/Ritzman
(1996), Chapter 14
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