Chapter 13 – Aggregate Planning Operations Management by R. Dan Reid & Nada R. Sanders 4th Edition © Wiley 2010 © Wiley 2010 1 Learning Objectives Explain business planning Explain sales and operations planning Identify different aggregate planning strategies & options for changing demand and/or capacity in aggregate plans Develop aggregate plans‚ calculate associated costs‚ and evaluate the plan in terms of operations‚ marketing‚ finance‚ and human resources Describe differences
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MD 021 - Management and Operations Aggregate Planning Outline Aggregate planning - definitions and strategies Linear programming (LP) Aggregate planning LP problem Chase and level strategy problems Definitions of Aggregate Planning Aggregate planning is the “big picture” approach to planning for the intermediate term ([pic] 1 year). The goal of aggregate planning is to achieve a production plan that will effectively utilize the organization’s
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Aggregate planning is the process of developing‚ analyzing‚ and maintaining a preliminary‚ approximate schedule of the overall operations of an organization. The aggregate plan generally contains targeted sales forecasts‚ production levels‚ inventory levels‚ and customer backlogs. This schedule is intended to satisfy the demand forecast at a minimum cost. Properly done‚ aggregate planning should minimize the effects of shortsighted‚ day-to-day scheduling‚ in which small amounts of material may be
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is called aggregate planning. Factors Affecting Aggregate Planning Aggregate planning is an operational activity critical to the organization as it looks to balance long-term strategic planning with short term production success. Following factors are critical before an aggregate planning process can actually start; A complete information is required about available production facility and raw materials. A solid demand forecast covering the medium-range period Financial planning surrounding
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Name __Apivit__Saibandith_________ QSO 600 Operations Management Week 9 Homework Assignment Aggregate Planning Instructions 1. Word-‐process your answers within this document. Do not create a new file. 2. This assignment is to be done individually. This is not a group assignment. 3. This homework assignment is due
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National Institute of Technology Calicut Department of Mechanical Engineering PRODUCTION PLANNING (AGGREGATE PLANNING) § § § § Concerned with the overall operations of an organisation over a specified time horizon Determines the efficient way of responding (allocating resources) to market conditions Effectively allocate system capacity (plant‚ equipment‚ and manpower) over designated period A good production plan should Ø be consistent with organisational policy Ø meet demand requirements
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PRODUCTION MANAGEMENT ASSIGNMENT Topic:- Aggregate Planning Submitted by:- ANJANA KRISHNAN FM-673 AGGREGATE PLANNING: Aggregate planning is the process of developing‚ analyzing‚ and maintaining a preliminary‚ approximate schedule of the overall
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Capacity Planning & Aggregate Production Planning Capacity Planning • Long term strategic decision • determines overall level of resources • affects product lead times‚ customer responsiveness & operating costs Capacity Planning Three Basic Strategies for Timing Capacity • Capacity Lead Strategy – capacity is expanded in anticipation of demand – aggressive and used to lure away customers from competitors already constrained Capacity Planning Three Basic Strategies for Timing Capacity • Capacity
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Aggregate Planning Aggregate Planning Aggregate planning is essentially a big-picture approach to planning. It is intermediate-range capacity planning that typically covers a time horizon of two to twelve months‚ although in some companies it may extend to as much as eighteen months. Aggregate planning is also sometimes known as sales and operations planning. Sales and operations planning is the intermediate-range decisions to balance supply and demand‚ integrating financial and operations
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LGT 2106 Principles of Operations Management Lecture 4 Capacity Management & Aggregate Planning Capacity Management • Capacity is the ability to hold‚ receive‚ store or accommodate. • Commonly viewed as the amount of output a system is capable of achieving over a specified period of time. – In a service setting‚ it can be the number of customers that can be handled from noon to 1pm. – In a manufacturing setting‚ it can be the number of automobiles that can be produced in a single shift. Capacity
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