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Aggregate Production Planning 4xgs

# Aggregate Production Planning 4xgs - Goal Learn a nice...

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Aggregate Production Planning Peter L. Jackson Professor School of O.R. and I.E. 3/7/2011 Industrial Data and Systems Analysis 1 Goal Learn a nice technique for production planning See it four ways: Bar chart Cumulative flow chart Excel spreadsheet Mathematical notation Interact with SQL query results using procedural Interact with SQL query results using procedural code Program the technique using Visual Basic for Applications Use industrial data set (sales of turkey stuffing) 3/7/2011 Industrial Data and Systems Analysis 2 Forecasting, Planning, and S h d li Scheduling Read Chapter 9 of 3/7/2011 Industrial Data and Systems Analysis 4

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Sales of Turkey Stuffing is Hi hl S l Highly Seasonal Line Monthly Sales and Capacity for Line 101 300 000 350,000 400,000 Cases) 150,000 200,000 250,000 300,000 d Capacity (C 0 50,000 100,000 1 2 3 4 5 6 7 8 9 10 11 12 Sales and Month Number Line Monthly Sales Maximum Cases Per Month 3/7/2011 Industrial Data and Systems Analysis 5 http://ecx.images-amazon.com/images/I/51P15JEPTDL.jpg The Bulldozer Method of P d ti Pl i Monthly Production and Capacity for Line 101 Production Planning 350,000 400,000 acity 150 000 200,000 250,000 300,000 on and Capa (Cases) 0 50,000 100,000 150,000 Productio ( 1 2 3 4 5 6 7 8 9 10 11 12 Month Number Required Production Maximum Cases Per Month 3/7/2011 Industrial Data and Systems Analysis 6 Why is the Direction of B lld I t t? Bulldozer Important? Monthly Sales and Capacity for Line 101 350,000 400,000 Cases) 150,000 200,000 250,000 300,000 d Capacity (C 0 50,000 100,000 Sales and 9 10 11 12 1 2 3 4 5 6 7 8 Month Number Line Monthly Sales Maximum Cases Per Month 3/7/2011 Industrial Data and Systems Analysis 7 Safety Stock is Required B f S l U t i t Because of Sales Uncertainty Line Safety Stock At Month End for Line 101 140,000 160,000 es) 60,000 80,000 100,000 120,000 Stock (Case 0 20,000 40,000 1 2 3 4 5 6 7 8 9 10 11 12 Safety Month Number Safety stock at end of month 3 is driven by variability of sales in month 4. 3/7/2011 Industrial Data and Systems Analysis 8