Aggregate Planning - Texas Tech University
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Transcript Aggregate Planning - Texas Tech University
Chapter 13
Aggregate Planning
Operations Management - 5th Edition
Roberta Russell & Bernard W. Taylor, III
Copyright 2006 John Wiley & Sons, Inc.
Beni Asllani
University of Tennessee at Chattanooga
Lecture Outline
Aggregate Planning Process
Strategies for Adjusting Capacity
Strategies for Managing Demand
Quantitative Techniques for Aggregate
Production Planning
Hierarchical Nature of Planning
Aggregate Planning for Services
Copyright 2006 John Wiley & Sons, Inc.
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Aggregate Planning
Determine the resource capacity needed to
meet demand over an intermediate time
horizon
Aggregate refers to product lines or families
Aggregate planning matches supply and demand
Objectives
Establish a company wide game plan for allocating
resources
Develop an economic strategy for meeting
demand
Copyright 2006 John Wiley & Sons, Inc.
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Aggregate Planning Process
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Meeting Demand Strategies
Adjusting capacity
Resources necessary to meet demand
are acquired and maintained over the
time horizon of the plan
Minor variations in demand are handled
with overtime or under-time
Managing demand
Proactive demand management
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Strategies for Adjusting Capacity
Level production
Overtime and under-time
Producing at a constant rate
Increasing or decreasing
and using inventory to
working hours
absorb fluctuations in
Subcontracting
demand
Let outside companies
Chase demand
complete the work
Hiring and firing workers to
Part-time workers
match demand
Hiring part time workers to
Peak demand
complete the work
Maintaining resources for
Backordering
high-demand levels
Providing the service or
product at a later time period
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Level Production
Demand
Units
Production
Time
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Chase Demand
Demand
Units
Production
Time
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Strategies for Managing Demand
Shifting demand into
other time periods
Incentives
Sales promotions
Advertising campaigns
Offering products or
services with countercyclical demand patterns
Partnering with suppliers
to reduce information
distortion along the
supply chain
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Quantitative Techniques For APP
Pure Strategies
Mixed Strategies
Linear Programming
Transportation Method
Other Quantitative
Techniques
Copyright 2006 John Wiley & Sons, Inc.
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