Lecture 07 (6 slides per page)

Lecture 07 (6 slides per page) - BUS 105: Production and...

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BUS 105: Production and Operations Management Copyright: Mohsen ElHafsi 2011 1 BUS 105 Production and Operations Management Aggregate Planning BUS 105: Production and Operations Management Planning Horizon Aggregate planning : Intermediate- range capacity planning, usually covering 3 to 12 months. 2 Short range Intermediate range Long range Now 3 months 1 Year Overview of Planning Levels Short-range plans (Detailed plans) Machine loading Job assignments Intermediate plans (General levels) BUS 105: Production and Operations Management Employment Output Long-range plans Long term capacity Location/layout 3 BUS 105: Production and Operations Management Planning Sequence Corporate strategies and policies Economic, competitive, and political conditions Aggregate demand forecasts 4 Business Plan Establishes operations and capacity strategies Aggregate plan Establishes operations capacity Master schedule Establishes schedules for specific products Aggregate Planning Inputs Resources Workforce Facilities Demand forecast Costs Inventory carrying Back orders Hiring/firing BUS 105: Production and Operations Management Policies Subcontracting Overtime Inventory levels Back orders Overtime Inventory changes subcontracting 5 BUS 105: Production and Operations Management Aggregate Planning Outputs Total cost of a plan Projected levels of Inventory 6 Output Employment Subcontracting Backordering
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BUS 105: Production and Operations Management Copyright: Mohsen ElHafsi 2011 2 BUS 105: Production and Operations Management Aggregate Planning Strategies Proactive Alter demand to match capacity Reactive 7 Alter capacity to match demand Mixed Some of each BUS 105: Production and Operations Management Demand Options Pricing Promotion 8 Back orders New demand BUS 105: Production and Operations Management Capacity Options Hire and layoff workers Overtime/slack time 9 Part-time workers Inventories Subcontracting BUS 105: Production and Operations Management Aggregate Planning Terminology Production Rate : Number of units completed per unit of time (e.g., per day or per week) Workforce Level : Number of workers 10 needed for production Inventory on Hand : Unused inventory carried over from the previous period. Planning Horizon : The period of time covered by the aggregate plan (3 to 12 months). Divided into monthly or quarterly time periods.
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This note was uploaded on 06/01/2011 for the course BUS Business 1 taught by Professor B.mishra during the Spring '10 term at UC Riverside.

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Lecture 07 (6 slides per page) - BUS 105: Production and...

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