COMMERCE 2OC3 Study Guide - Final Guide: Production Planning, Master Production Schedule

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 2OC3
• Professor: Fouzia Baki

Document Summary

Aggregate planning: objective is to meet forecasted demand while minimizing cost over the planning period. The planning process: determine the quantity and timing of production for the immediate future. Objective is to minimize cost over the planning period by adjusting: Production rates, labour levels, inventory levels, overtime work, subcontracting rates, other controllable variables. < shows how aggregate planning fits into the larger production planning system. 2: use part-timers, over tiem, or idle time to absorb changes, use sub contractors and maintain a stable work force, change prices or other factos to influence demand. Capacity options: varying work sie by hiring or layoffs training and separation costs for hiring and laying off workers. Match production rate to demand new workers may have lower productivity laying off workers may lower morale and productivity. Capacity options: varying production rate through over time or idle time: allows constant workforce.