BUSI 2603U Lecture Notes - Lecture 7: Master Production Schedule, Production Planning, Decision Rule
2 Feb 2017
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Document Summary
Aggregate planning *for examples go to through the example slides * The objective of aggregate planning is to meet forecasted demand while minimized cost over the planning period. Part of a larger production planning system. Disaggregation breaks the plan down into greater detail. Disaggregation results in a master production schedule. A mixed strategy may be the best way to achieve minimum costs. Finding the optimal plan is not always possible. Determine the quantity and timing of production for the intermediate future: objective is to minimize cost over the planning period by adjusting. Trial - and - error approaches that do not guarantee an optimal solution. Useful for generating strategies: transportation method of linear. Produces an optimal plan: management coefficients model. Model build around manager"s experience and performance. Builds a model based on managers experience and performance. A regression model is constructed to define the relationships between decision variables. Objective is to remove inconsistencies in decision making: other models.
