Aggregate production planning in a fuzzy environment

This work presents a novel fuzzy linear programming method for solving the aggregate production planning problem where the market demands and unit cost to subcontract are fuzzy in nature. Limitations of applying the conventional mathematical programming technique towards medium-term production planning are also discussed. In addition, the specific fuzzy linear programming model is proposed. Moreover, an interactive solution procedure is developed to provide a compromise solution. Finally a numerical example is presented to demonstrate the effectiveness of the solution procedure. The proposed procedure allows a decision maker to model a problem according to the current information. The proposed model is more appropriate than the unfuzzy problem formulation in terms of reflecting a realistic situtation. Consequently, the information costs are generally decreased.