GENERAL RULES FOR PRODUCTION PLANNING WITH SEASONAL DEMAND

A fundamental problem for make-to-stock producers of seasonally demand ed goods is the allocation of limited production capacity. Three impor tant decisions must be made: (1) how early in the low demand season to produce at full capacity in anticipation of high demand later, (2) th e product mix to manufacture when producing in anticipation of later d emand, and (3) when capacity is insufficient to make all that is desir ed, how to allocate capacity among products. Here, simple rules are ge nerated for solving these problems by analysing optimal policies.