A heuristic-based algebraic targeting technique for aggregate planning in supply chains

Abstract

Process integration techniques have seen its establishment in many non-conventional applications in the last decade. One of the newest applications of process integration technique is in the area of supply chain management. The well-established pinch analysis tools of composite curves and grand composite curves have been demonstrated their adaptability in this new area. Although the graphical tools provide many important insights for production planners, the common limitations of these graphical tools such as inaccuracy and being cumbersome need to be overcome. This calls for an algebraic targeting approach presented in this paper, known as the supply chain cascade analysis to supplement the various graphical tools. The cascade analysis technique sets targets for a supply chain. Besides, other new insights such as minimum and maximum inventory as well as the scheduling of process shut down are being introduced in this paper. Two industrial case studies are presented to illustrate the proposed method.