Chapter 11 Aggregate and Planning and Master Scheduling P301

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  1. Aggregate Planning (aggregate- thinks that are collected together)
    • A process to develop tactical plans to support the organization's business plan. Usually includes the development, analysis and maintenance of plans for total sales, total production, targeted inventory, and targeted backlog for families of products.the productions plan is the result the process.
    • (ex IUS students by different schools)  
    • Intermediate - range capacity planning, usually covering 2 to 12 months
    • GOALS; achieve a production plan that will effectively utilize the organizations resources to satisfy demand
    • there are two approaches  to accomplish this are 1. production planning, 2. sales and operations planning
  2. Production Plan
    the agreed upon plan that comes from thhe production planning ( sales and operations planning) process, specifically the overall level of output planned to be produced, usually stated as a monthly rate for each product family. The production plan is managements authorization for the master scheduler to convert into a more detailed plan, that is, the master production schedule
  3. Sales and Operations Planning
    • Some organization use the term sales operations and planning rather than aggregate planning
    • Sales and operation planning
    •    intermediate range planning decisions to balance supply and demand, integrating financial and operations planning
  4. Planning Sequence (book model 459)
  5. Dealing with Variation
    • Most organizations use rolling 3,6,9 and 12 months forecasts 
    •  -Forecasts are updated periodically, rather than relying on a once a year forecast
    • - This allows
  6. Demand Options
    • Pricing
    •   Used to shift demand from peak to off peak periods
    •    Price elasticity is important
    • Promotion
    •    Advertising and other forms of promotion
    •  Backorders
  7. the number one way that organization
    trial and error
  8. MAthematical Techniques
    • Linear programing- is a mathematical technique for solve multiple ways
    • Computerzied models that can be tested under different
  9. Aggregate planning in Services
    Hospitals: How  are we founding thing, how are we staffing things

    Airlines: How are they pricing, how do the factor weather

    Restaurants: aggregate planning in high volume businesses is directed towards smoothing the service rate, determining workforce size
  10. Aggregate plan->DISAGGREGATION->Master Schedule
    • we are getting more specific
    • instead of planning for one month we plan for one week
    • we are know going to start thinking about customer orders
  11. Master Schedule
    • The master schedule maintains this schedule, and in turn, it becomes a set of planning numbers that drives the material requirements planning
    • definition (power point) 
    • The heart of production planning and control
Card Set:
Chapter 11 Aggregate and Planning and Master Scheduling P301
2015-03-11 16:04:31
exam 3
exam 3
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