A systematic literature review of aggregate production planning (APP): Social and economic perspectives

Abstract

Purpose: The intricate interplay between economic dynamism and social cohesion is essential for holistic advancement and enduring societal welfare. This systematic review aims to critically evaluate APP literature with a focus on social and economic aspects. Previous APP studies have primarily focused only on the economic aspects, often overlooking the social aspects, leading to poor social performance and profit drop.

Design/methodology/approach: We reviewed the most recent APP papers published in the last 13 years from 2010 to 2023 and systematically classified them based on model type, solution approach, objective function, and social and economic parameters involved in the studies.

Findings: The outcome shows that most of the previous studies applied mixed-integer linear programming (MILP) methods in developing the APP models while stochastic and fuzzy methods are the most common approaches to deal with uncertainties. Among all the APP studies, only about one-fifth of them focused on both the economic and social aspects. Specifically, 21 cost parameters and 4 social parameters have been identified from the previous APP studies. The most common cost parameter is inventory cost while customer satisfaction level is the most prevalent social parameter.

Research limitations/implications: This article bridges the gap between economic and social considerations, offering a holistic approach to production management. It highlights the broader implications of APP by demonstrating economic benefits, alongside the social impacts.

Originality/value: This article presents a comprehensive review of APP studies from social and economic aspects. It provides insights into the application of social and economic parameters in APP and motivates more research interest or attention to address the social aspects of APP.