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CHAPTER 13.docx

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BUSI 2301
Inder S Mann

CHAPTER 13: Aggregate Operations Planning A. Intro - Aggregate planning: intermediate - range cap planning, usually covering 2 to 12 months - Sales and ops planning o The process of integrating customer focused marketing plans for a new and existing products with the mgmt. of ops o The process must reconcile all supply, dmd, and new product plans at both the detail and aggregate lvl and tie them to business plan B. Nature of Aggregate Ops Planning - AOP: is essentially a big picture approach to planning o Ag planning begins with a forecast of aggregate dmd for the intermediate range o Ag plans are updated periodically to take into account updated forecasts and other changes o AOP is concerned with quan and timing - Inputs and outputs of AOP o Resources  Workforce  Facilities o Dmd forecasts o Policy stmts  Subcontracting  Overtime  Inventory lvls  Back orders o Costs  Inv carrying  Back orders  Hiring/firing  Ot  Subcontracting o Total cost of plan o Projected lvls of inv  Inventory  Output  Employment  Subcontracting  Backordering C. Demand and Cap Options a. Demand options i. Pricing ii. Promotion iii. Back orders iv. New complementary products b. Cap options i. Hire and lay off workers ii. Ot/slack time iii. Part time workers iv. Invs v. Subcontracting D. Basic Strategies for Meeting Uneven Dmd Level out
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