Chapter 5- Forecasting
Chapter 6: Aggregate Planning and Inventory
Operations scheduling & inventory management are
Most critical activities. (*3catgories below)Operations
managers= balance capacity (labor, materials,
1. Long-range= over a year plan established 1
specific outputs in
aggregate production plan
workforce size, inventory), major decisions.
2. Intermediate, Medium Plans= 6-18 months, minor
details in capacity, or employment levels.
((MPS) is more detailed than APP;
shows quantity & time of end product.
IE QUIZ an
3. Short Range= few days, most detailed, exact item
quantity for day or hour.
(MRP)*provides planning information*
detailed process for Master production schedule)
calculates exact quantities, dates needed by, planned
order releases.MRP links internal operations. MRP
= includes APP, MPS,
= lacks ability to link foreign branches to
headquarters, also with external supply chain. MRP II
“what if” analysis. Then evolved to
Distribution Requirement Planning
= time phased from warehouse to distribution
controls which items should be counted
more frequently than others.
Aggregate Production Plan=
process translates annual
business & marketing plans & forecasts into production plans
for a product
. Demand management
demand, orders received, promotions, safety stock.
Costs= inventory, set-up, machine operating, hiring, firing,
The Chase Production Strategy
chase = make-to-order
adjusts capacity to
Make-to-order manufacturing firms
(one-of a kind products.)
The level Production
highly skilled labor-
-low prices, fast delivery. 3:
Assignable variations: can be eliminated ,from cause.