Topic-13 Aggregate Planning.ppt

# Maximum production rate during regular time for all

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maximum production rate during regular time for all items is 20,000 total units per week. The desired production utilization rate is 87.5% of regular time per week. The desired production utilization rate is 87.5% of regular time capacity. The desired average inventory level is 1500 units. capacity. The desired average inventory level is 1500 units. At the present time, there are customer orders for only item 9199. the expected At the present time, there are customer orders for only item 9199. the expected demand for this item over the next eight weeks is: demand for this item over the next eight weeks is: week week expected expected demand demand week week Expected Expected demand demand 1 9,000 9,000 5 15,000 15,000 2 25,000 25,000 6 21,000 21,000 3 19,000 19,000 7 14,000 14,000 4 18,000 18,000 8 17,500 17,500

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If there is no beginning inventory, a feasible master schedule for this If there is no beginning inventory, a feasible master schedule for this item would be: item would be: Period Period 1 2 3 4 5 6 7 8 Beginning Beginning Inventory Inventory Master schedule schedule 17500 17500 19000 19000 17500 17500 18000 18000 14000 14000 17500 Expected Expected demand demand 9000 25000 19000 19000 18000 15000 21000 21000 14000 14000 17500 Inventory Inventory ending ending 0 8500 1000 1000 500 3000 0 0 8500 1000 1000 500 3000 0 0 0
Sum of ending inventories: (8,500+1,000+1,000+500+3,000+0+0+0) = Sum of ending inventories: (8,500+1,000+1,000+500+3,000+0+0+0) = 14,000 14,000 Average inventory Average inventory = = Sum of ending inventory Number of periods 14,000 8 = = 1750 (> 1500) Average Utilization = Total master schedule units . (reg. time capacity per period) (number of periods) = 17,500+17,500+…+….. . . +17,500 (20,000X8) = 86.25% (<87.5%)

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If there is no beginning inventory, a feasible master schedule for this If there is no beginning inventory, a feasible master schedule for this item would be: item would be: Period 1 2 3 4 5 6 7 8 Beginning Inventory Master Master schedule 16000 16000 20000 20000 19000 19000 18500 18500 15500 15500 20000 20000 14000 14000 19000 19000 Expected Expected demand 9000 9000 25000 25000 19000 19000 18000 18000 15000 15000 21000 21000 14000 14000 17500 17500 Inventory ending 0 7000 2000 0 500 1000 0 0 7000 2000 0 500 1000 0 0 1500
Sum of ending inventories: (7,000+2,000+0+500+1,000+0+0+1,500)=12,000 Sum of ending inventories: (7,000+2,000+0+500+1,000+0+0+1,500)=12,000 Average inventory Average inventory = = Sum of ending inventory Number of periods = 12,000 8 1,500 = Average Utilization Total master schedule units . (reg. time capacity per period)(number of periods) = = (16,000+20,000+…+…+…+14,000+19,000) (20,000X8) = 87.58% (>87.50%)

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Total Capacity = 8X20,000 = 160,000 Total Capacity = 8X20,000 = 160,000 Desired Utilization = 87.5% Desired Utilization = 87.5% Required MPS Quantity = (160,000X87.5%) Required MPS Quantity = (160,000X87.5%) = 140,000 = 140,000 Average= 140,000/8 = 17.5 per week Average= 140,000/8 = 17.5 per week
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• Summer '18
• Jonh
• Management, Manufacturing resource planning, Master Production, aggregate production

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