Mgmt 361 - Ch4 - part I

Mgmt 361 - Ch4 - part I - MGMT 361 Operations Management...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
1 MGMT 361 Operations Management (OM) Ch IV Part I: Aggregate Planning Based on: Ch. 13 from Stevenson
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Process Selection Chapter I: Introduction Chapter II: Process Analysis Chapter III: Process Selection Chapter VI: Inventory Management Chapter V: Quality Management Chapter VII: MRP Chapter VIII: Lean Production & Supply Chain Mgmt 2 Planning and Control Output Input Control Operations Process schematic
Background image of page 2
Aggregate Planning 3 Decision OM Examples Strategic New Plants, Capacity Expansion, Process Selection Tactical Aggregate planning , Master Production Schedule Operational MRP, Detailed scheduling, … Objective: Develop a feasible production plan on an aggregate level based on demand, capacities, costs and other factors. Terminology: Planning horizon, planning strategy (chase or level), constraints, aggregate production plan (basic plan, adjustments, final plan).
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Aggregate Planning 4 Our approach 1. Calculate aggregate demand for each period. 2. Preparing aggregate plan: a) Select a strategy and obtain the basic plan. b) Make adjustments to satisfy policies ( constraints ) to get the final plan. 3. Prepare Budget: Break down the final plan (giving preference to least cost production method) and calculate costs. 4. Budget improvement: Make further adjustments to improve costs. (Demonstration only, no questions on the exams ). Generally for our examples we will use one period = one month
Background image of page 4
Example 1 Part (a) : Calculate aggregate (demand) requirement in term of the standard product “AA” 5 Time [Hrs. /unit] Demand [units] Demand in standard units AA 2.0 2000 2*2000/ 2 BB 3.0 1000 3*1000 /2 CC 1.5 2400 1.5*2400 /2 DD 1.0 1200 1.0*1200 /2 Aggregate requirement Calculating aggregate demand How much time to manufacture demand for each product? How many standard units can we make in the same time? HP iPAQ
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Example 1 Part (a) : Calculate aggregate (demand) requirement in term of the standard product “AA” Time [Hrs. /unit] Demand [units] Demand in standard units AA 2.0 2000 BB 3.0 1000 CC 1.5 2400 DD 1.0 1200 Aggregate requirement *2000 = 2000 units *1000 = 1500 units *2400 = 1800 units *1200 = 600 units 5900 units Calculating aggregate demand (2.0 / 2.0) (3.0 / 2.0) (1.5 / 2.0) (1.0 / 2.0) HP iPAQ Part (b): What to do if capacity in standard units is 5000?
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 20

Mgmt 361 - Ch4 - part I - MGMT 361 Operations Management...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online