Module I_Aggregate Planning

Module I_Aggregate Planning - Production Planning IELM120 1...

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IELM120 1 Production Planning
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IELM120 Leaning Objectives Understand production planning sequence Understand the concepts of aggregate planning Use Trial-and-Error Approach to develop aggregate plans 2
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IELM120 Production Planning Sequence 3 Corporate strategies and policies Economic, competitive and political conditions Aggregate demand forecasts Strategy and general plans Detailed schedules Business plan Master schedule Aggregate plan
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IELM120 Aggregate Planning Intermediate-range capacity planning that typically covers a time horizon of 2 to 12 months Translate demand forecasts into a blueprint for planning staffing and production levels over the time horizon. Goal: Achieve a production plan that will effectively utilize the organizations’ resources to satisfy demand Make decisions on output rates, employment levels and changes, inventory levels, back orders, and subcontracting 4
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IELM120 The Concept of Aggregation A big picture approach Focus on groups of products instead of individual products McDonalds focus on overall demand and capacity Plan capacity in terms of total labor hours, total machine hours or total output rates 5
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IELM120 Match Demand and Supply 6
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IELM120 Match Demand and Supply: Demand Options Pricing Price reduction leads to higher demand Promotion Free delivery, free after sale service, coupon Back orders Short selling: Sell now, deliver later New demand Generating new demand to make use of excess capacity Finding alternative uses for the product 7
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IELM120 Match Demand and Supply: Supply Options
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This note was uploaded on 01/28/2011 for the course IELM 120 taught by Professor Fu,qi during the Spring '09 term at HKUST.

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Module I_Aggregate Planning - Production Planning IELM120 1...

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