Professional Documents
Culture Documents
plain what aggregate planning is and how it is useful. Identify the variables decision makers have to work with in aggregate planning and some of the possible strategies they can use. Describe some of the graphical and quantitative techniques planners use. Prepare aggregate plans and compute the costs
Planning Horizon Aggregate planning : Intermediate-range capacity planning, usually covering 2 to 12 -(18) months. Short-range plans (Detailed plans) Machine loading Job assignments Intermediate plans (General levels) Employment, sub contracts etc Output Long-range plans Long term capacity Location / layout
Outputs
Total cost of a plan Projected levels of inventory Inventory Output Employment Subcontracting Backordering
Some of each
Basic Strategies for Meeting Uneven Demand Maintain a level workforce Maintain a steady output rate Match demand period by period Use a combination of decision variables
Level capacity strategy/ Constant work force strategy : Maintain a level of workforce or maintain a steady output rate while meeting variations in demand by a combination of inventories, overtime, part-time workers, subcontracting, and back orders. Negative on employee morale, cost, paperwork, risk of insufficient skilled workers, union resistance, and possible lost sales due to back orders.
Chase demand strategy: Match demand period by period. Maintain less inventory than the level capacity strategy. Negative on the similar factors as level capacity strategy due to unstable supply. Use a combination of both strategies. Chase Approach
Advantages Investment in inventory is low Labor utilization in high Disadvantages The cost of adjusting output rates and/or workforce levels is increased Level Approach Advantages Stable output rates and workforce Disadvantages Greater inventory costs Increased overtime and idle time Resource utilizations vary over time
Linear Programming
The goal is to minimize the sum of costs related to regular labor time, overtime, subcontracting, inventory holding costs, and costs associated with changing the size of the workforce. Constraints involve the capacities of the workforce, inventories, and subcontracting.
The main limitations of LP model are the assumptions of linear relationships among variables, the inability to continuously adjust output rates, and the need to specify a single objective (e.g., minimizing costs) instead of using multiple objectives (e.g., minimize cost while stabilizing the workforce).
Master Scheduling
Master schedule Determines quantities needed to meet demand Interfaces with Marketing Capacity planning Production planning Distribution planning
Master Scheduler
Evaluates impact of new orders Provides delivery dates for orders Deals with problems Production delays Revising master schedule Insufficient capacity