Aggregate Planning.ppt - 1 Aggregate Sales and Operations...

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1Aggregate Sales and Operations Planning
2Master schedulingMaterial requirements planningOrder schedulingWeekly workforce andcustomer schedulingDaily workforce and customer schedulingProcess planningStrategic capacity planningSales and operations (aggregate) planningLongrangeIntermediaterangeShortrangeManufacturingServicesSales planAggregate operations planForecasting& demandmanagement
3Sales and Operations PlanningActivitiesLong-range planningGreater than one year planning horizonUsually performed in annual incrementsMedium-range planningSix to eighteen monthsUsually with weekly, monthly or quarterlyincrementsShort-range planningOne day to less than six monthsUsually with weekly or daily increments
4The Aggregate Operations PlanMain purpose: Specify the optimalcombination ofproduction rate (units completed per unitof time)workforce level (number of workers)inventory on hand (inventory carried fromprevious period)Product group or broad category(Aggregation)This planning is done over an intermediate-range planning period of 3 to18 months
5Balancing Aggregate Demandand Aggregate Production Capacity0200040006000800010000JanFebMarAprMayJun45005500700010000800060000200040006000800010000JanFebMarAprMayJun450040009000800040006000Suppose the figure tothe right representsforecast demand inunitsSuppose the figure tothe right representsforecast demand inunitsNow suppose thislower figure representsthe aggregate capacityof the company tomeet demandNow suppose thislower figure representsthe aggregate capacityof the company tomeet demandWhat we want to do isbalance out theproduction rate,workforce levels, andinventory to makethese figures match upWhat we want to do isbalance out theproduction rate,workforce levels, andinventory to makethese figures match up
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Term
Fall
Professor
N/A
Tags
Supply And Demand, 1978, Operations Planning, informationbelow

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