Aggregate Planning

AGGREGATE PLANNING (Ch. 14) ,[object Object],Part of a Hierarchical Planning System Planning Horizon Long range Short range Intermediate range Now 2 months 1 Year

Hierarchical Planning System Business Plan Sales Plan Marketing Finance Operations Master Production Schedule (M PS) Aggregate Plan Material Requirement Planning (M RP) Resource Plan

Marketing, Financial and Operations Planning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Aggregate Production Planning ,[object Object],[object Object],[object Object],[object Object],[object Object]

Aggregate Planning ,[object Object],[object Object],[object Object],[object Object]

Planning Approaches ,[object Object],[object Object],[object Object],[object Object]

Strategies for Managing Demand Proactive Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Basic (Pure) Reactive Strategies ,[object Object],[object Object],[object Object],[object Object]

Pure Strategies for Meeting Demand (a) Level Production - inventory, backorder/lost sales Units Time Production Demand (Sales Plan) Production Demand

Time Units Demand Production (b) Chase Demand: hire/fire, overtime, part-time, subcontract

Evaluating Alternative Plans ,[object Object],[object Object]

Basic Reactive Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object]

Hybrid Reactive Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object]

Mixed Strategies for Meeting Demand ,[object Object],[object Object],[object Object],[object Object],[object Object]

Inputs and Outputs to Aggregate Production Planning Aggregate Production Planning Demand Forecasts Company Policies Financial Constraints Strategic Objectives Capacity Constraints Size of Workforce Production per month (in units or $) Inventory Levels Units or dollars subcontracted, back ordered, or lost

Demand-based Options ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Capacity-based Options ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Developing Aggregate Plan ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Developing the Aggregate Plan ,[object Object],[object Object],[object Object],[object Object]

Summary of Planning Techniques

Service Planning Issues ,[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],Disaggregating

Master Scheduling Process Master Scheduling Beginning inventory Forecast Customer orders Inputs Outputs Projected inventory Master production schedule Uncommitted inventory

Aggregate Planning

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