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Impact of COVID-19 on forecasting and aggregate production planning: a case study

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  • Katelyn Thompson
  • Johnathan Munn
  • Hari K. Rajagopalan

Abstract

Forecasting and aggregate production planning (APP) are interrelated. Forecasting is used to estimate demand. Aggregate production planning uses the demand forecast to balance capacity requirements and production quantities for medium-term planning horizons. These plans provide input for further planning steps. In 2020, COVID-19 disrupted the forecast and required a re-evaluation of the production plans for the rest of the year. This paper presents a case study investigating the impact of COVID-19 on the Aggregate Production Plan for Sonoco's Rigid Paper and Closures Division plant in the southern United States. The forecast for 2020 was developed using demand data from 2014-2019. The aggregate production plan was developed using linear programming formulation. Multiple scenarios were constructed with managerial implications on decisions made for 2020.

Suggested Citation

  • Katelyn Thompson & Johnathan Munn & Hari K. Rajagopalan, 2023. "Impact of COVID-19 on forecasting and aggregate production planning: a case study," International Journal of Process Management and Benchmarking, Inderscience Enterprises Ltd, vol. 14(2), pages 155-175.
    • Handle: RePEc:ids:ijpmbe:v:14:y:2023:i:2:p:155-175
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