In this paper we give a procedure to allow aggregate shortages in the context of LP approach to APP. We give two approaches to handle this. It will be worthwhile to explore which approach is better (equation (12) for handling shortages or equation (15)?). An experimental investigation is underway to establish the same. In the next part of the paper we give how to handle shortages in the LDR (Linear Decision Rule) model of APP. The concept of aggregate shortage also; and give two ways to handle the same in the context of LP approach to APP. On similar lines we give a procedure that enables introduction of aggregate shortages in the LDR model of APP also. This is a useful contribution we make.
Keywords
Aggregate Production, LP Based Approach, LDR Based Approach to APP, Aggregate Shortage