Aggregrate Planning 12.pptVIP

Aggregate Planning Core MRP II Aggregate Planning Strategies Maintain a level workforce Maintain a steady output rate Match demand period by period Use a combination of decision variables Basic Strategies Level capacity: Maintaining a steady rate of regular-time output while meeting variations in demand by a combination of options. Chase demand: Matching capacity to demand; the planned output for a period is the expected demand for that period. Disaggregating Master schedule: The result of disaggregating an aggregate plan; shows quantity and timing of specific end items for a scheduled horizon. Rough-cut capacity planning: Approximate balancing of capacity and demand to test the feasibility of a master schedule. Master Scheduling Process Aggregate Production Planning Aggregate Versus Detailed Plans Costs Of Production Chase, Level, And Mixed Strategies Aggregate Versus Detailed Plans Plans differ in terms of detail and planning horizons The aggregate production plan has a moderate horizon but little detail E.g., Plan overall facility production month-by-month for the the next 18 months The master production schedule has a short horizon but great detail E.g., Plan production for each product week-by-week for the next 12 weeks Aggregate Versus Detailed Plans Why plan aggregate production levels? Aggregate plans do not provide detail needed to run facility But detail unnecessary for medium-range resource deployment decisions Labor force size Financing inventory Aggregate forecasts are more accurate than detailed forecasts Aggregate Versus Detailed Forecasts Sales forecasts can be aggregated with respect to time: Sales forecasts can be aggregated with respect to time: Sales forecasts can be aggregated with respect to product: Sales forecasts can be aggregated with respect to product: Why? Aggregate forecasts are more accurate than individual detailed forecasts Why? Aggregate forecasts are more accurate than individual detailed forecasts Use aggregate f