Aggregate Planning. Production and Operations Planning. Production Process Design. Long Term Capacity Planning. Aggregate Planning. Forecast. Master Production Schedule. Demand. Material Requirements Planning. Individual Order Scheduling. The main idea behind aggregate planning.
Production Process Design
Long Term Capacity Planning
Master Production Schedule
Material Requirements Planning
Individual Order Scheduling
Translates business plans into rough labor schedules and production plans
Production rate: “aggregate units” per worker per unit time
Workforce level: available workforce in terms of hours
Actual Production: Production rate x Workforce level
Inventory: Units carried over from previous periods
Costs: production, changing workforce, inventory
Given an aggregate demand forecast, determine production levels, inventory levels, and workforce levels, in order to minimize total relevant costs over the planning horizon
Given the number of variables, there is not a single optimal solution!
Production requirement = Forecast – Beginning Inventory
Ending Inventory = Beginning Inventory + Production Requirement – Forecast
Number of workers required
= Total hours required over planning horizon/(8*total days)
= 38,000/(8*125) = 38. This is the no. of workers for each month
Number of workers
= enough workers to cover requirements in April
= 27 workers (this is the no. of workers for each month)
… outsourcing costs increase or decrease?
… the holding costs are higher?
… the hiring costs are lower?
… the firing costs are higher?
We can always plug the data in and re-calculate the costs