Production Planning and Scheduling for Seasonal Demand

When sales vary significantly according to season, the manufacturer makes special provisions to integrate the acquisition of raw materials and labour with an effective production schedule which satisfies customers′ requirements. The recommended procedure is called aggregate planning, and many algorithms produce a good definitive solution. However, they have been ignored by industry. The empirical research presented here looks at such planning in a sample of 20 Australian factories. It sheds some light on the acknowledged gap between theory and practice, and suggests that business strategy, the extent of the seasonal distortion, and the tactical remedies available, are all linked. Strategic and tactical considerations tend to bypass the aggregate planning step, and the problem is ultimately resolved at the master production schedule level.