This paper investigates Aggregate Production Planning (APP) model in a multi-plant producing multi-product to satisfy portion of fully deterministic demand in several cities for short term planning horizon. A Preemptive Goal Programming (PGP) approach is proposed with different scenarios to solve the APP model with conflicting multi-objective functions in order to maximize the total net profit with limited investment (budget), limited storage space, production capacity, and resources of the company. The proposed PGP model is also used to minimize the total production, inventory, transportation and defective items costs with optimum transportation pattern. A model is optimality solved and validated for a small numeric example of production planning problem with the results of optimal solutions for different scenarios obtained using optimization software LINGO package.
Keywords: Aggregate production planning, Linear programming, Multi-objective criteria, Preemptive Goal Programming, Transportation .