Chapter%2013-14 - EIN6336 Chapter13and14notes...

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Click to edit Master subtitle style   EIN 6336 Chapter 13 and 14 notes
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  Hierarchy of Production Decisions Strategic (long range) Which products to produce? Do we compete on cost, quality, delivery,  flexibility? Where do we locate facilities? What production equipment do we use? Materials, energy, labor strategy
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  Hierarchy of Production Decisions Tactical (medium range) Size of work force Overtime and number of shifts Production rate Inventory plan Shipping modes Subcontracting strategy
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  Hierarchy of Production Decisions Operational (short range) What to procure and produce Suppliers from which to order Order processing and follow-up Shop floor scheduling and sequencing Material control
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  Aggregate Planning Medium-range planning Production rates, work force size, inventory levels  6 months to 2 years out Planning done for families of items (not individual  item basis) Often uses linear programming model
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  Demand Management Matching supply to demand Forecasting Distribution planning and scheduling to meet  demands Order entry, promise, and follow-up
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  Master Production Scheduling Drives short-run operations Disaggregates aggregate plan into specific plan  for individual products Used to promise delivery dates Shorter time periods (weeks or days) Important to create realistic plan to avoid  capacity infeasibilities Usually done at the finished product or 
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Chapter%2013-14 - EIN6336 Chapter13and14notes...

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