SMG OM 323 Chapter Notes - Chapter Ch. 11: Master Production Schedule, Aggregate Demand, Product Design
18 Mar 2017
School
Department
Course
Professor
Document Summary
Aggregate planning: intermediate-range capacity planning that typically covers a time horizon of 2 - 12 months (some 18 months). Goal to achieve a production plan that will effectively utilize the organization"s resources to match expected demand. Sales and operations planning is defined as making intermediate-range decisions to balance supply and demand, integrating financial and operations planning. Intermediate planning in perspective: make capacity decision on three levels: Long term, relate to product and service selection, facility size and location, equipment decisions, and layout of facilities. Establish the capacity constraints within which intermediate planning must function. Intermediate term, general levels of employment, output, and inventories, which in turn establish boundaries within which short- range capacity decisions must be made. Short term, scheduling jobs, workers and equipment, and the like. 12-month forecasts that are updated periodically rather than relying on a once-a-year forecast. Allows planners to take into account any changes in either expected demand or expected supply and to develop revised plans.
