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Rough-Cut Capacity Planning in SCM EIN 5346 Logistics Engineering Fall, 2014. Rough-Cut Capacity Planning in SCM Theories & Concepts. Material programs Supplier selection Cooperation. Plant location Production systems - Subcontractors.
- Warehouse replenishment- Transportation planning
Flow of goods
Main goal in rough-cut capacity planning is to identify where overloading or under-loading of production capacity occurs and revise the MPS as required.
(Backword consumption of 4 days and a forward consumption of 3 days)
Starting from a demand plan, SNP checks the resource capacities and delivers a medium/long-term plan for the estimated sales volumes.
The main settings in the capacity leveling profile are scheduling direction, prioritization, and method.
Heuristic-based capacity leveling compares, period by period, the capacity load on a resource with the requested load, either from the beginning or from the end of the planning horizon – depending on which scheduling direction is selected (forward or backward scheduling).
For forward scheduling, the system moves the orders so far that the first activity using the resource to be leveled only begins after the overloaded period.
Now switch to the CAPACITY CHECK view. In the Selection profile
section double click on ## RESOURCES. Double click on the work center (plant ##A1). Switch the TB Profile to 12MONTH. We appear to have enough capacity in the work center at the aggregated monthly level.
Now change the TB Profile to 180 DAYS. We are overloaded in the first couple days as SCM has tried to produce all that is needed to satisfy safety stock in those days.
Operation research refers to the application of quantitative methods and techniques to business problems in order to best utilize a company’s resources.
OR is used by many leading companies in recent years to optimize their limited resources in order to maximize their profits or minimize their costs.
Linear programming (LP) is one of the most important tools of operation research.Operation Research (OR)
Any problems (whether involving transportation or not) fits the model for a transportation problem if it can be described completely in term of a parameter table like Table 8.5 and it satisfies both the requirements assumption and cost assumption.
The objective is to minimize the total cost of distributing the units. All the parameters of the model are included in this parameter table.Transportation Problem Modeling
6. Please solve the following LP problem.
Objective: Min Z = 10,000 X1 + 15,000 X2
S.T. X1 + 2X2 >= 4
X 1+ X2 >= 2.5
1) Draw a graph
2) Plot the constraint function
3) Outline the feasible solution
4) Circle the optimal solution point.
7. The Green Up Fertilizer Company ships fertilizer from three manufacturing plants to four distribution centers (DC). The shipping cost per truckload of fertilizer from each plant to each DC is:
PlantDistribution Center (DC)
1 $464 $513 $654 $867
2 $352 $416 $690 $791
3 $995 $682 $388 $685
Plant 1 has a monthly capacity of 75 truckload, Plant 2 has a monthly capacity of 125 truckload, and the Plant 3 has a monthly capacity of 100 truckload. The monthly DC demand is A = 80 truckload, B = 65 truckload, C = 70 truckload, and D = 85 truckload. Please formulate an LP problem to determine how much truckload of fertilizer should be shipped from each plant to each DC per month to minimize monthly shipping cost.
1) Define the objective.
2) Define the decision variables.
3) Write the mathematical function for the objective.
4) Write the constraints.
5) Solve the LP problem using Lingo or Excel Addin.