10_posting_-_Aggregate_Planning

10_posting_-_Aggregate_Planning - Aggregate Planning A good...

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10/08/2010 1 Aggregate Planning A good plan today is better than a perfect plan A good plan today is better than a perfect plan tomorrow. tomorrow. proverb proverb
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10/08/2010 2 Quick Recap Process Supply Demand Analyze performance (process analysis) Estimate demand (forecasting) Manage inventory (inventory control)
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10/08/2010 3 But what about an overall plan? There is always a need for a high level plan Capacity investments usually require long-term planning Aggregate planning Translating business plans into rough labor schedules and production plans
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10/08/2010 4 Key steps in manufacturing and service planning 1. Master production schedule: Generates amounts and dates for each order 2. Capacity plan: Facilities, warehouses, and labor are available at times needed 3. Materials Requirement planning: Takes the overall plan down to component level; creates a materials plan 4. Order scheduling: Day-to-day ordering
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10/08/2010 5 Hierarchical Planning Allocate production among plants Determines seasonal plan by product type Determines monthly item production schedules Decision process Corporate level Plant Manager Shop supervisor Decision level Annual demand by item and region Monthly demand by product type Monthly demand by item Forecasts needed
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10/08/2010 6 Aggregate Planning Components Production rate : # of units per unit of time Workforce level : # of workers (or labor hours) needed Inventory on hand : Units carried over from previous period (if we assume adequate capacity in facilities and equipment) P W I
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10/08/2010 7 What does aggregate planning do? For a given time period t , and demand forecasts F t , determine production rates P t , inventory levels I t , and workforce levels W t in order to minimize total production costs Given the number of variables and limited constraints, there is not a single optimal solution!
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10/08/2010 8 0 2000 4000 6000 8000 10000 Jan Feb Mar Apr May Jun 4500 5500 7000 10000 8000 6000 0 2000 4000 6000 8000 10000 Jan Feb Mar Apr May Jun 4500 4000 9000 8000 4000 6000 The figure to the right represents forecast demand in units The figure to the right represents forecast demand in units The lower figure represents the aggregate capacity of the company to meet demand The lower figure represents the aggregate capacity of the company to meet demand What we want to do is balance out the
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This note was uploaded on 12/28/2011 for the course SCM 372 taught by Professor Cook during the Fall '11 term at Michigan State University.

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10_posting_-_Aggregate_Planning - Aggregate Planning A good...

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