DSCI 304 Study Guide - Midterm Guide: Production Planning, 18 Months
12 Nov 2016
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Document Summary
Aggregate planning: intermediate-range capacity planning that typically covers a time horizon of 2 to 18 months. Useful for organizations that experience seasonal or other variatins in demand. Goal: achieve a production plan that will effectively utilize the organizations resources to satisfy demand. Strategic: aggregation is important because it is not possible to predict with accuracy the timing and volume of demand for individual items. Aggregate planning is connected to the budgeting process can also help synchronize flow throughout the supply chain, it affects costs, equipment utilization, employment levels and customer satisfaction. Prominent aggregate planning strategies: maintain a the same level workforce, maintain a steady output rate, match demand period by period, use a combination of decision variables. Level capacity strategy: maintaining a steady rate of regular- time output while meeting variatins in demand by a combination of options. Inventories, overtime, part-time workers, subcontracting and back orders.
