4266690 dmfd 3513 ch7 aggregate capacity planning r

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Unformatted text preview: Aggregate Planning Determine the quantity and timing of production for the immediate future Objective is to minimize cost over the Objective planning period by adjusting Ir. Haery Sihombing/IP Sihombing/IP Pensyarah Fakulti Kejuruteraan Pembuatan Universiti Teknologi Malaysia Melaka 7 AGGREGATE & CAPACITY AGGREGATE PLANNING Aggregate Planning Production rates Production Labor levels Labor Inventory levels Inventory Overtime work Overtime Subcontracting Subcontracting Other controllable variables Other The Planning Process Long-range plans (over one year) Research & Development New product plans Capital investment Facility location/expansion Required for aggregate planning A logical overall unit for measuring logical sales and output A forecast of demand for intermediate forecast planning period in these aggregate units Top executives Operations managers A method for determining costs method Operations managers, supervisors, foremen Responsibility Aggregate Planning Quarter 1 Feb 120,000 Apr 100,000 Marketplace and demand Jul 180,000 Job assignments Ordering Job scheduling Dispatching Overtime Part-time help Demand forecasts, orders Product decisions Research and technology Process planning and capacity decisions Workforce Aggregate plan for production Jun 150,000 Quarter 3 Aug 150,000 Master production schedule and MRP systems Sep 140,000 Figure 13.1 Planning tasks and horizon Aggregate Planning Mar 110,000 Quarter 2 May 130,000 Sales planning Production planning and budgeting Setting employment, inventory, subcontracting levels Analyzing cooperating plans Short-range plans (up to 3 months) A model that combines forecasts and model costs so that scheduling decisions can be made for the planning period Jan 150,000 Intermediate-range plans (3 to 18 months) Detailed work schedules Raw materials available External capacity (subcontractors) Inventory on hand Figure 13.2 Aggregate Planning Aggregate Combines appropriate resources Combines into general terms Part of a larger production planning Part system Disaggregation breaks the plan Disaggregation down into greater detail Disaggregation results in a master Disaggregation production schedule Capacity Options Changing inventory levels Changing Increase inventory in low demand Increase periods to meet high demand in the future Increases costs associated with Increases storage, insurance, handling, obsolescence, and capital investment Shortages can mean lost sales due Shortages to long lead ti...
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This note was uploaded on 05/21/2011 for the course ECON 123 taught by Professor Day during the Spring '11 term at Arab Open University, Amman.

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