10 Aggregate_Planning

10 Aggregate_Planning - Aggregate Planning Anheuser-Busch...

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Aggregate Planning Aggregate Planning
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Anheuser Anheuser - - Busch Busch Anheuser-Busch produces nearly 40% of the beer consumed in the U.S. Matches fluctuating demand by brand to specific plant, labor, and inventory capacity High facility utilization requires meticulous cleaning between batches effective maintenance efficient employees efficient facility scheduling
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Planning Horizons Planning Horizons Today 3 Months 1 year 5 years Planning Horizon Short-range plans Job assignments Ordering Job scheduling Dispatching Intermediate-range plans Sales planning Production planning and budgeting Setting employment, inventory, subcontracting levels Analyzing operating plans Long-range plans R&D New product plans Capital expenses Facility location, expansion Responsible: Operations managers, supervisors, foremen Responsible: Operations managers Responsible: Top executives
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Aggregate Planning Aggregate Planning Provides the quantity and timing of production for intermediate future Usually 3 to 18 months into future Combines (‘aggregates’) production Often expressed in common units Example: Hours, dollars, equivalents (e.g., FTE students) Involves capacity and demand variables
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Aggregate Planning Goals Aggregate Planning Goals Meet demand Use capacity efficiently Meet inventory policy Minimize cost Labor Inventory Plant & equipment Subcontract
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Aggregate Planning Strategies Aggregate Planning Strategies Pure Strategies Pure Strategies Capacity Options — change capacity: changing inventory levels varying work force size by hiring or layoffs varying production capacity through overtime or idle time subcontracting using part-time workers
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Aggregate Planning Strategies
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10 Aggregate_Planning - Aggregate Planning Anheuser-Busch...

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