Aggregate planning mrp and short term scheduling
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Aggregate Planning, MRP, and Short Term Scheduling. Introduction. What – Determine the quantity and timing of production for the immediate future Where – To meet forecasted demand Why – Minimize costs. The Planning Process. Aggregate planning ties strategic goals to production plans

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Aggregate Planning, MRP, and Short Term Scheduling

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Aggregate planning mrp and short term scheduling

Aggregate Planning, MRP, and Short Term Scheduling


Introduction

Introduction

  • What – Determine the quantity and timing of production for the immediate future

  • Where – To meet forecasted demand

  • Why – Minimize costs


The planning process

The Planning Process

  • Aggregate planning ties strategic goals to production plans

  • Medium range – 3 to 18 months

  • Requires:

    • Measure of sales and output

    • Forecast of demand for the period

    • Method of determining costs

    • Model that combines forecasts and costs


Aggregate plan relationships

Aggregate Plan Relationships

Marketing

Customer

Demand

Production

Capacity

Inventory

Finance

Cash Flow

Human

Resources

Manpower

Planning

Aggregate Production Plan

Procurement

Supplier

Performance

Management

Return on

Investment

Capital

Engineering

Design

Completion


Capacity options

Capacity Options

  • Change inventory levels

  • Change workforce size

  • Change production rates

  • Subcontracting

  • Using Part-Time Workers


Demand options

Demand Options

  • Influence demand

  • Back order during high demand periods

  • Counterseasonal product mix 


Strategies

Strategies

  • Chase strategy

  • Level strategy

  • Mixed strategy


Aggregate planning problems

Aggregate Planning Problems

  • The Transportation Model of linear programming is a form of Aggregate Planning

  • Compare different strategies

  • Tabulate costs of the plan over a period of time


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