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Unformatted text preview: ) + . . . + .06(5.8) = 4.8644 worker
hours. Forecasts for demand for aggregate units can be
obtained by taking a weighted average (using the same
weights) of individual item forecasts. How to do the Aggregate
Suppose that D1, D2, . . . , DT are the forecasts of
demand for aggregate units over the planning horizon (T
periods.) The problem is to determine both work force
levels (W t) and production levels (Pt ) to minimize total
costs over the T period planning horizon.
The goal of aggregate planning is to determine
aggregate production quantities and the level of
resources required. (e.g. workforce level, number of
units to be produced)
units 4 Issues in Aggregate Planning
Smoothing. Refers to the costs and disruptions that
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This document was uploaded on 03/23/2014.
- Spring '14