On the goals and mechanics of replanning

Abstract

There have been many years in our planning experience when the output targets set for the various industries have fallen far short of the planned levels. Occasionally, surpluses too have existed. In these circumstances, there is need for flexibility in planning. Recently, the rolling plan has been proposed to provide such flexibility. In this paper, we have examined the conditions needing replanning. Unless there is to be a change in the objective, cm alternative approach for replanning is proposed which strives to maintain the priorities implicit in the original plan. Planners should strive not only for measures which will bring the actual output close to the planned levels but also refix the targets set for the various sectors taking inter-sectoral consistency into account. In this paper, we have provided mathematical programming formulations that will help planners to reset targets in this way. The new set of output targets would vary depending on whether the objective is to remain as close as possible to the original vector of final demand or to the original levels of sectorwise employment, since our illustrative exercise shows that there is a trade-off between employment and income which the planners must consciously choose.