Topic-13 Aggregate Planning.ppt

# Inventory costper manhour quarter firing in any

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Tradeoff between Firing vs. Inventory: (Cost/Per Manhour-Quarter) Firing in Any Quarter: = \$2,000/480 = \$4.16 Keep Inventory: For 1 Quarter: \$0.15 For 2 Quarter: \$0.30 For 3 Quarter: \$0.45 For 4 Quarter: \$0.60 ----------------------------------------- ----------------------------------------- For 20 Quarter: \$3.00 For 28 Quarter: \$4.20 > (\$4.16) So: When demand decreases, we prefer to use Inventory over Firing, unless we must keep Inventory for a very long period (28 Quarters – 7 Years).

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Aggregate Production Plan Sheet Plan:3 Policy: Mixed with Hiring/Firing & Overtime (in 1,000 units) Quarter 1 2 3 4 Total Beginning Inventory 25 Regular Production 96 Overtime Production Forecasted Demand 100 80 140 120 Labor-hours Hired Labor-hours Fired Safety Stock 12 12 12 12 Ending Inventory Total Production Cost: = \$4X432,000+(24000/480)X1000+ 0.15X 92,000 = \$1,791,800 0 0 0 21 37 17 17 92 21 96 0 0 37 120 24 17 120 0 0 432 24
Aggregate Production Plan Sheet Plan:4 Policy: Mixed (in 1,000 units) Quarter 1 2 3 4 Total Beginning Inventory 25 Regular Production Overtime Production Forecasted Demand 100 80 140 120 Labor-hours Hired Labor-hours Fired Safety Stock 12 12 12 12 Ending Inventory Total Production Cost: \$4X432,000 + (12,000/480) X \$1,000 + \$0.15X140,000 = \$1,774,000 33 61 29 108 108 108 108 432 0 0 0 0 0 12 0 0 0 12 0 0 0 0 0 33 61 29 17 140

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Master Production Scheduling
Master Production Schedule for Products X, Y, Z 1 2 3 4 5 6 7 8 9 10 Product X 200 400 200 100 900 Product Y 100 100 15 0 100 30 0 Product Z 100 200 20 0 100

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Master Production Scheduling (MPS) MPS is a detailed production schedule for end-products (or service), specified period with the exactly quantities Three major input to MPS 1. forecasts of end-product demand 2. actual orders received from customers 3. aggregate production planning (APP)
Master Production Scheduling (MPS) (II) Objective of MPS: develop a Master production schedule for each end-product to meet the specified demand of each period under given production leadtime and capacity. Time fences: to reflect the scheduling flexibility: * frozen: 1st section in which all schedule are fixed * firm: 2nd where schedules can be changed if needed * full: 3rd with full capacity scheduled but changes is ok * Open section: last few periods, capacity available for new orders

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Where Planning and Scheduling Meet? Planning Scheduling Planning Bill of Materials Aggregates: product and resource families Forecast and order balancing Resource characteristics Machine setup characteristics Detailed routings/ operations Finite Constraint Model And Engine Advanced planning and scheduling share a common core, but each has its own set of functions that others does not fulfill
Product structure Production planning Capacity planning 1.Product group Aggregate production planning Resource requirement planning 2. End products Master production scheduling Rough-cut capacity planning 3. component Material requirement planning Capacity requirement planning

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Product Structure, Production Planning and Capacity Planning Development of MPS: 1. Select MPS items 2. Determine MPS planning horizon 3. Develop an initial schedule 4. Rough-cut capacity analysis
Overall View of the Inputs to a Standard Material Requirements Planning Program and the reports Generated by the Program Aggregate Production Plan Material Planning (MRP computer program) Master Production Schedule (MPS) Firm Orders

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• Summer '18
• Jonh
• Management, Manufacturing resource planning, Master Production, aggregate production

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