The Dynamics of Aggregate Planning

Recent software developments in system modelling via transfer function analysis now enables a much broader understanding of the dynamics of aggregate planning to be gained. In particular it opens up the possibility of exploiting filter theory as a focal point during algorithm design. This is particularly attractive in view of the fact that we have established, via transfer function models, that there is commonality between HMMS and the order-up-to replenishment rules used extensively within both local and global supply chains. Filter theory allows us to relate these dynamics directly to present day production planning strategy as observed in much industrial practice. It covers the spectrum of production strategies recently identified as preferred industrial practice. These strategies range from “level scheduling” (i.e. lean production) right through to “pure chase” (i.e. agile manufacture) with appropriate simple algorithmic control support via APIOBPCS software.