ChIV-AggregatePlanning_I-Sp10

Generally we will use one period one month

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Unformatted text preview: in the same time? Generally we will use one period = one month ChIV‐AggregatePlanning‐Sp10 3 Part (b): What to do if capacity in standard units is 5000? What Overtime / temporary workers / subcontract (out sourcing), produce in the prior period, back order (produce in future periods), don’t meet demand. ChIV‐AggregatePlanning‐Sp10 4 MGMT 36100 MGMT 36100 product? Ex.2 How much time do we need to meet demand for each product? How many standard units can we make in the same time? Rate [unit/day] E D I 200 160 60 Demand [units] 3000 880 120 Demand in standard units (3000 (3000 / 200) * 160 = 2400 ( 880 / 160) * 160 = 880 ( 120 / 60) * 160 = 320 = 3600 Examples 1 and 2: comparison How much time do we need to meet demand for each product? How many standard units can we make in the same time? Time [Hrs. /unit] AA BB CC DD 2.0 3.0 1.5 1.0 Demand 2000 1000 2400 1200 1200 Demand in standard units 2.0 * 2000 / 2.0 = 2000 3.0 * 1000 / 2.0 = 1500 1.5 * 2400 / 2.0 = 1800 1.0 * 1200 / 2.0 = 0600 1200 0600 5900 Demand in standard units (3000 / 200) * 160 = 2400 (880 / 160) * 160 = 0880 (120 / 60) * 160 = 0320 3600 6 15.0 days 5.5 days 2.0 days 22.5 days Aggregate requirement requirement Production time: 3600 [units] / 160 [units/day] = 22.5 [days]. If we have 21 days available during the next month, we need to plan for the excess units. Any product can be a standard Back ordering problems: product. Customer Customer satisfaction. Lost sales. What if demand remains high? We still need the same amount of time to make all products. Will Will need a long term solution. ChIV‐AggregatePlanning‐Sp10 5 Aggregate requirement Rate [unit/day] E D I 200 160 60 ChIV‐AggregatePlanning‐Sp10 Demand 3000 880 120 Aggregate requirement MGMT 36100 MGMT 36100 ChIV-AggregatePlanning-Sp10 1 Developing Aggregate Plan. For aggregate planning, we consider a number of periods; the total span is called the planning horizon. For planning, we can planning use different strategies: Ch...
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This note was uploaded on 12/14/2010 for the course MGMT 361 taught by Professor Panwalker during the Spring '10 term at Purdue.

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