The following are examples of methods used in Aggregate Planning:
- Linear programming
- Transportation Model
In the Transportation Model of planning:
- each row in the transportation table represents a production period.
- each column in the transportation table represents a demand period.
- each cell in the transportation table represents cost of production and inventory holding cost.
When formulating the aggregate planning problem the following criteria must be met so that the transportation model can be used
- Productive capacity (supply) and demand are expressed in the same units.
- Total capacity for the planning horizon equals total forecast demand.
- All cost relationships are treated as being linear.