PDF versus LP: An empirical aggregate planning comparison

Production Decision Framework (PDF) is a recently introduced heuristic method for solving the aggregate planning problem. The algorithm was developed and tested over a wide range of deterministic demand patterns and cost parameters. The decision by Wayn-Tex Inc., to adopt the methodology provided a real world opportunity to evaluate the performance of PDF under uncertainty over a one year's operating period.This paper concentrated on a study of (1) the effectiveness of the model in selecting a suitable rolling planning horizon, and (2) the performance of PDF as compared to a linear program solution using the same length horizon. The monthly sales forecast used in the study, developed by the sales department, took into consideration trend, seasonality, and known market conditions. The results were gratifying. Management has indicated their desire to continue using PDF as a guide in the production planning process through the use of the computerized program available.