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Aggregate Planning ,[object Object],[object Object],[object Object]
Conflicting Objectives in AP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Aggregate Unit of Production ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Aggregate Unit of Production : Example ,[object Object],[object Object],[object Object],[object Object],[object Object],½ ½  500 1250 1000 min 2500 min Product A Product B Price/Prod. time Price ($) Production Time
Aggregate Unit of Production : Example ,[object Object],½ ½  500 1250 1000 min 2500 min Product A Product B Volume/Prod. time Volume(cm 3 ) Produc. Time
Aggregate Unit of Production : Example ,[object Object],[object Object],725 5.8 M38 525 5.4 M26 425 5.2 L38 395 5.1 L98 345 4.9 K42 285 4.2 A55 Selling Price ($) Total Production Time (hours) Model Number
Aggregate Unit of Production : Example ,[object Object],[object Object],[object Object],[object Object]
Aggregate Unit of Production : Example ,[object Object],[object Object],[object Object],[object Object],[object Object]
Planning Steps hierarchy Forecast of aggregate demand for t period Planning horizon Aggregate production Plan : Production and  Workforce levels for each period Master Production Schedule : Production levels by item by period Material Requirements Planning : Detailed  Time table for production and assembly of  Components and subassemblies
Aggregate Production Plan ,[object Object],[object Object],[object Object],[object Object]
Issues in Aggregate Planning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Issues in Aggregate Planning ,[object Object],[object Object],[object Object],[object Object],[object Object]
Costs in Aggregate Planning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Costs in Aggregate Planning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Aggregate Planning: Example ,[object Object],[object Object],[object Object],[object Object],[object Object]
Aggregate Planning: Example ,[object Object],7520 2000 1400 June 5520 2000 2000 May 3520 1200 1200 April 2320 900 900 March 1420 640 640 February 780 780 1280 January Net cumulative demand Net predicted demand Predicted demand
Aggregate Planning: Example Inventory
Aggregate Planning: Example ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Aggregate Planning: Example Strategy 1  :  Chase the demand by changing  work force levels Month Number of  Working  days Number of  Units produced Per worker (Bx.14653) Forecast Net demand Min. # of  Worker required (D/C) Initial Calculations Table D C B A
Aggregate Planning: Example Total cost = 755(500)+145(1000)+30(80) = 524,900 Month # of Workers # of units per  workers #  fired # hired Cum. Product. Produc Tion (BxE) Cum. Demand. Inven tory. A B D C F E G H I Aggregate Production/capacity plan
Aggregate Planning: Example Min.  Number Of Workers required 411 Strategy 2: Constant work force : Keep the work force level constant throughout the planning horizon Month Cumulative net demand Cumulative # of units produced  per worker Ratio (B/C) Required workforce for strategy 2
Aggregate Planning: Example Total cost = (411-300)(500)+5963(80) = 532,540 Month Production Per worker Monthly Production (Bx411) Cumulative production Cumulative Net demand Inven tory Aggregate Production/capacity plan
Are we missing anything?? :P
Aggregate Planning: Example ,[object Object],[object Object],[object Object],[object Object]
Aggregate Planning: Example Mixed Strategies ,[object Object],[object Object],[object Object],[object Object]
Aggregate Planning: Example Red strategy Blue strategy
Aggregate Planning: Assignment ,[object Object]

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Aggregate Production Planning

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  • 9. Planning Steps hierarchy Forecast of aggregate demand for t period Planning horizon Aggregate production Plan : Production and Workforce levels for each period Master Production Schedule : Production levels by item by period Material Requirements Planning : Detailed Time table for production and assembly of Components and subassemblies
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  • 19. Aggregate Planning: Example Strategy 1 : Chase the demand by changing work force levels Month Number of Working days Number of Units produced Per worker (Bx.14653) Forecast Net demand Min. # of Worker required (D/C) Initial Calculations Table D C B A
  • 20. Aggregate Planning: Example Total cost = 755(500)+145(1000)+30(80) = 524,900 Month # of Workers # of units per workers # fired # hired Cum. Product. Produc Tion (BxE) Cum. Demand. Inven tory. A B D C F E G H I Aggregate Production/capacity plan
  • 21. Aggregate Planning: Example Min. Number Of Workers required 411 Strategy 2: Constant work force : Keep the work force level constant throughout the planning horizon Month Cumulative net demand Cumulative # of units produced per worker Ratio (B/C) Required workforce for strategy 2
  • 22. Aggregate Planning: Example Total cost = (411-300)(500)+5963(80) = 532,540 Month Production Per worker Monthly Production (Bx411) Cumulative production Cumulative Net demand Inven tory Aggregate Production/capacity plan
  • 23. Are we missing anything?? :P
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  • 26. Aggregate Planning: Example Red strategy Blue strategy
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