We consider a production planning method that applies a Flexibility Requirements Pro_le (FRP) to allow a certaindegree of flexibility in production planning. The purpose of employing FRP is to cope with demand uncertainty whilekeeping a high stability of production by enforcing bounds on production plans. We _rst investigate the effectivenessof FRP in reducing the variation of planned production (thus increasing production stability). We also propose a newimplementation of production planning in conjunction with FRP and linear programming-based aggregate planning.Our numerical study reveals that the proposed scheme produces not only a lower production cost in average but also asignificantly lower variation of planned production when compared to those yielded by the conventional implementation of FRP without optimization.
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