ChIV-AggregatePlanning_I-Sp10

Chase chase strategy produce quantity equal to

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Unformatted text preview: ase, Level or a combination. Chase, Chase Strategy: produce quantity equal to aggregate demand for each period in order to keep inventory level zero. Level Strategy: Produce quantity equal to the average requirement over the planning horizon. Example 3 Chase Strategy Period Capacity Requirement 1 5000 2 Constraints: Cannot exceed capacity. No shortages are permitted. What’s wrong with the basic plan? 8000 8000 Policies (constraint) examples: 1. Capacity in each period may be limited. 2. No shortages may be permitted (customer satisfaction). 3. No inventory is kept. 4. Must leave certain inventory at the end of period X. 5. Must meet demand during planning horizon. 6. Hiring and firing of workers. Sometime we may have soft constraints. We try to meet these soft constraints as much as possible. ChIV‐AggregatePlanning‐Sp10 7 Basic Plan 5000 End Inventory Inventory 0 Adjusted Plan 5000 End Inventory 0 3 4 Capacity exceeded in P3. P3. 8000 8000 What can we do? 6000 8500 4500 Shift 500 units to P1. Shift 500 units to P2. 6000 8500 4500 Shift 500 units to P4. 0 0 0 A combination? 6500 8000 4500 500 0 0 Shift 500 units to P2. -- Produce close to desirable period. Why? Adjusted plan is ok. This is the final plan plan. Requirement also means demand. Plan represents production quantity. ChIV‐AggregatePlanning‐Sp10 8 MGMT 36100 MGMT 36100 Constraints: Cannot exceed capacity. No shortages are permitted. Level Strategy Average demand = (5000+6000+8500+4500)/4 = 6000 Example 3 . cont Inv. for period X = Inv. for (X-1) + Production for X - Demand for X (XPeriod Capacity Demand Basic plan plan Inventory Adjust. 1 Inventory Adjust. 2 Inventory 0 Ex 4: Chase Period Requirement Basic Plan Inventory Adjusted plan Inventory Inventor Final Plan Inventory Constraints: No shortages. Capacity 4000. Must have at least 600 units at the end of April. Jan. 2000 Feb. March April 4500 4800 4300 May 2900 2900 0 2900 600 2300 0 June 2700 2700 0 2700 600 2700 0 0 1 2 8000 8000 5000 6000 6000 6000 6000 0 0 6500 650...
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