3-Aggregate_Planning_Part_I

3-Aggregate_Planning_Part_I - AGGREGATE PL ANNI NG (AP) /...

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Unformatted text preview: AGGREGATE PL ANNI NG (AP) / SALES & OPERATI ONS PL ANNI NG (S& OP) PART I Aggr egate Planning (Topla k şı Planlama) AP is also called macro production planning. Decisions made at the macro level: involves translating demand forecasts into a blueprint for planning work force, production levels and inventory levels over a medium range planning horizon tactical level decisions. Covers a planning horizon of 4 months to a year out. Spring 2010 2 IE 324 – AP / S&OP Aggr egate Planning (Topla k şı Planlama) Focus on resource use through the medium range in face of dynamic demand (found by forecasts). AP (S& OP) requires that demand is deterministic or known in advance. Focus on managing groups of products. S& OP is constrained by the longer term strategic decisions, like the size of facilities, technology used. Spring 2010 3 IE 324 – AP / S&OP Competing Objectives in Aggr egate Planning 1. React quickly to anticipated changes in demand. Use a chase strategy : Allow for sufficient capacity to enable production output to match the demand. A poor strategy in the long run. Production rate may vary widely, and therefore make frequent changes in size of labor force. Avoid high inventory carrying costs. Spring 2010 4 IE 324 – AP / S&OP Competing Objectives in Aggr egate Planning 1. M aintain a stable wor k for ce Use a level production strategy: Allow for the same production rate throughout the year....
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This note was uploaded on 05/23/2010 for the course IE 324 taught by Professor T during the Spring '10 term at Middle East Technical University.

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3-Aggregate_Planning_Part_I - AGGREGATE PL ANNI NG (AP) /...

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