Management and Organizational Studies 3330A/B Study Guide - Midterm Guide: Master Production Schedule, Aggregate Demand, Business Plan
28 Sep 2018
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Aggregate planning: (we are grouping a family of products together) Aggregate plan (medium term) master production schedule (st, weekly/daily, for individual products: bp ap mp schedule. An aggregate production plan = a production plan to meet aggregate demand: medium term (6-18 months, agg. Demand = demand for product lines of product families: app = period-by-period plan of production, workforce, and inventory levels, main concern = do we have enough capacity? (goal is to meet demand) Aggregate planning strategies: active strategy = influencing demand (incentives, sales promos, marketing) (controls the demand rate, reactive strategy = by managing supply and capacity (inventory, back orders, overtime, hiring, firing) (controls supply rate) 2 main approaches to the reactive strategy: level constant production rate by no hiring/firing, chase varying production rate by hiring/firing, level: Demand variability dealt by inventory, overtime, undertime, subcontracting. Bad for inventory buildup or stock outs. Sometimes we will be ahead or behind with too much or little inventory: chase:
