An LP-aggregation view on aggregation in multi-level production planning

Multi-level production planning systems often suppose a top level which anticipates a lower level in terms of coarsened, i.e. aggregate information. Aggregation can occur with respect to products, capacities, time and/or (sub-)projects. Since many of the underlying models are constructed on the conceptual basis of linear programming, results from linear programming aggregation have to be regarded when generating and evaluating such a system. A review of LP-aggregation is presented. Results are then transferred to product and resource aggregation with respect to the coordination of aggregate production planning and master production scheduling. In contrast to many other publications, the analysis not interpret aggregation in production planning heuristically or as black-box, but explicates aggregation in production planning in terms of LP-aggregation. Results can be transferred to several other aggregation approaches in production planning.