Aggregate Planning
Aggregate Planning
Core MRP II
Aggregate Forecast Aggregate Production Plan
Detailed Forecast
Purchasing
Dispatching
Aggregate Planning
Aggregate Planning
Basic Strategies
Level capacity:
Maintaining a steady rate of regular-time output while meeting variations in demand by a combination of options.
Chase demand:
Matching capacity to demand; the planned output for a period is the expected demand for that period.
Aggregate Planning
Disaggregating
Master schedule: The result of disaggregating an aggregate plan; shows quantity and timing of specific end items for a scheduled horizon. Rough-cut capacity planning: Approximate balancing of capacity and demand to test the feasibility of a master schedule.
Aggregate Planning
Outputs
Projected inventory
Master Scheduling
Aggregate Planning
Period
1 2 3 4 5 6 7 8 9 10 11 12
frozen
firm
full
open
Aggregate Planning
Aggregate Planning
The master production schedule has a short horizon but great detail
E.g., Plan production for each product week-by-week for the next 12 weeks
Aggregate Planning
Aggregate Planning
Aggregate Planning
Aggregate Planning
Aggregate Planning
Aggregate Planning
% Error
Aggregate Planning
Aggregate Planning
Use detailed forecasts for initial detailed short-range Master Production Schedule (MPS)
Detailed forecasts reasonably accurate for this time frame Need product-specific detail for MPS
Aggregate Planning
Aggregate Planning
Q1 5,000 5,000
Q2 0 0
Q3 20,000 20,000
Q4 5,000 5,000
Aggregate Planning
Q1 5,000 5,000
Q2 0 0
Q3 20,000 20,000
Q4 5,000 5,000
Aggregate Planning
Period Forecasted Demand (DLH) Aggregate Production (DLH) Projected Available Balance (DLH) Workers
Q1 5,000 5,000 0 10
Q2 0 0
Q3 20,000 20,000
Q4 5,000 5,000
Aggregate Planning
0 10
Aggregate Planning
0 10
Aggregate Planning
Aggregate Planning
Period Forecasted Demand (DLH) Aggregate Production (DLH) Projected Available Balance (DLH) Workers Wages Cost Hiring Cost Firing Cost Holding Cost Backorder Cost Total Cost
0 10
Q2 0 0 0 0 0
Aggregate Planning
0 10
Aggregate Planning
0 10
Aggregate Planning
Period Forecasted Demand (DLH) Aggregate Production (DLH) Projected Available Balance (DLH) Workers Wages Cost Hiring Cost Firing Cost Holding Cost Backorder Cost Total Cost
0 10
Q2 0 0 0 0 0 0 5,000 0 0 5,000
Aggregate Planning
Aggregate Planning
Aggregate Planning
Aggregate Planning
0 10
Aggregate Planning
0 10
Aggregate Planning
0 10
Aggregate Planning
0 10