MSc Thesis by Cem Kazan:
An Optimization Model for the Incorporation of the Cultural Environment in the Aggregate Production Problem

Sustainable Aggregate Production Planning Framework

Supply chain management uses different tools in the planning process one of which is the aggregate production planning model. This model determines production rates, inventory levels, and workforce requirements of a production plant on a periodic basis to minimize total costs (or maximize total profit) while fulfilling customer demands in time. The traditional aggregate production planning model is a cost-driven model like other prevalent supply chain management tools. However, the widespread adoption of economic factors while ignoring environmental, social and cultural factors in the planning and management of the supply chain is a flawed approach: the supply chain cannot be expressed apart from environmental, social, and cultural factors as an island isolated from the real world. Therefore, the requirement for a step change to a realistic model leading to sustainability forces the decision makers to be more demanding and sensitive to all four pillars of the sustainability. In this scope, this thesis aims to fill gaps in the current body of knowledge by combining economic, environmental, social, and cultural factors of sustainability within the aggregate production planning model. To do so, firstly we define new parameters, decision variables, and constraints. Then, we expand the formulation scope of the traditional aggregate production planning model within single- and multi-objective models to cover sustainability considerations. Finally, we analyze the modified models with a case study from real life.

Keywords: supply chain sustainability, sustainable aggregate production planning, environmental responsibility, social equity, cultural vitality

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