5/8/2007Industrial Data and Systems Analysis1Aggregate Production PlanningPeter L. JacksonProfessorSchool of O.R. and I.E.5/8/2007Industrial Data and Systems Analysis2Sales of Turkey Stuffing is Highly SeasonalLine Monthly Sales and Capacity for Line 101050,000100,000150,000200,000250,000300,000350,000400,000123456789101112Month NumberSales and Capacity (Cases)Line Monthly SalesMaximum Cases Per Month5/8/2007Industrial Data and Systems Analysis3Monthly Production and Capacity for Line 101050,000100,000150,000200,000250,000300,000350,000400,000123456789101112Month NumberProduction and Capacity (Cases)Required ProductionMaximum Cases Per MonthThe Bulldozer Method of Production Planning5/8/2007Industrial Data and Systems Analysis4Why is the Direction of Bulldozer Important?Monthly Sales and Capacity for Line 101050,000100,000150,000200,000250,000300,000350,000400,000910111212345678Month NumberSales and Capacity (Cases)Line Monthly SalesMaximum Cases Per Month5/8/2007Industrial Data and Systems Analysis5Safety Stock is Required Because of Sales UncertaintyLine Safety Stock At Month End for Line 101020,00040,00060,00080,000100,000120,000140,000160,000123456789101112Month NumberSafety Stock (Cases)Safety stock at end of month 3 is driven by variability of sales in month 4.5/8/2007Industrial Data and Systems Analysis6Why Was Safety Stock So High for Month 3? Month 4 VariabilityIs this random variability or is this a trend? A statistical question.Sales of Product 285210050,000100,000150,000200,000250,000300,000350,000400,000456789101112123456789101112123456789101112123Month NumberMonthly Sales (Cases)
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