Aggregate Planning appeared in the literature many years ago
and is a popular topic for research ever since. There is no general
consensus on the significance of APP in practical applications. In
this study we investigated the impact of APP on service- and
inventory level in an MRP-based MTO production system. We
implemented a simulation-optimization framework which corresponds
to the concept of hierarchical planning. In this framework
aggregate plans are calculated on a regular basis by an embedded
optimizer. They are then disaggregated and further processed on
lower planning levels. Short-term plans are executed on a shop
floor where performance indicators are measured. Both the
production processes and behavior of market demand are based
on information provided by an automotive supplier. We assumed
four demand market scenarios and sales forecasts were generated
using three alternative forecasting techniques. We also tested a
setting without APP. All scenarios were assessed based on their
effect on logistics parameters, i.e. service- and inventory level.