Aggregate Planning Based on Stochastic Demand DEA Model With an Application in Production Planning

Gongbing BI, Kun XIANG


Market demand and inventory are usually known in traditional DEA-based resource allocation method. However, market demand is always changing according to the market discipline. Thus, it is not rigorous to view market demand as constant. To cope with the uncertain demand, we further develop our mathematical model and impose the normality assumption for the stochastic product demands. In the end, a numerical example with hypothetical production data is used to illustrate the model.


Production planning; Resource allocation; Data envelopment analysis (DEA); Stochastic demand

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