Aggregate Planning

In: Business and Management

Submitted By dwane06
Words 2428
Pages 10
AGGREGATE PLANNING
I. Introduction A. Intermediate Planning B. The Concept of Aggregation II. The Purpose and Scope of Aggregate Planning A. Demand and Capacity B. Inputs of Aggregate Planning

C. Demand and Capacity Options

AGGREGATE PLANNING
III. Basic Strategies for Meeting Uneven Demand

IV. Techniques for Aggregate Planning
A. Informal Techniques B. Mathematical Techniques V. Aggregate Planning in Services VI. Disaggregating the Aggregate Plan VII. Master Scheduling A. Inputs

B. Outputs
C. Stabilizing the Master Schedule

AGGREGATE PLANNING
DEFINITION: • Aggregate planning is intermediate-range capacity planning that typically covers a time horizon of 2 to 12 months. • It deals with translating annual business and marketing plans into a production plan for all products. • It is particularly useful for organizations that experience seasonal or other fluctuations in demand or capacity. GOAL: The goal of aggregate planning is to achieve a production plan that will effectively utilize the organization’s resources to satisfy expected demand.

3 LEVELS WHICH ORGANIZATIONS MAKE CAPACITY DECISIONS:
1. Long-term decisions - relate to product and service selection, facility size and location, equipment decisions, and layout of facilities. 2. Intermediate decisions - relate to general levels of employment, output and inventories, which in turn define the boundaries within which short-range capacity decisions must be made.

3. Short-term decisions - consists of deciding the best way to achieve desired results within the constraints resulting from long-term and intermediate-term decisions.

OVERVIEW OF PLANNING LEVELS
Short-range plans
Detailed Plans: Machine Loading Job assignments Job sequencing Production lot size Order quantities Work Schedules

Intermediate Plans
General levels of: Employment Output Finished-goods Inventories…...

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