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Chapter 12 – Aggregate Planning

Chapter 12 – Aggregate Planning. Planning levels (long, intermediate and short ranges and real time control); Planning & Control Model; strategies for uneven demand. Planning Levels - 1 . Long Range Horizon: 3-5 years Intervals (“buckets”): Quarterly and annual

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Chapter 12 – Aggregate Planning

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  1. Chapter 12 – Aggregate Planning Planning levels (long, intermediate and short ranges and real time control); Planning & ControlModel; strategies for uneven demand SJSU Bus 140 - David Bentley

  2. Planning Levels - 1 • Long Range • Horizon: 3-5 years • Intervals (“buckets”): Quarterly and annual • Aggregation: Company, Division, Product Group or Product Line • Consists of: Sales Plan, Production Plan, Long Range Resource Plan (LRRP) • Supports: Business Plan SJSU Bus 140 - David Bentley

  3. Planning Levels - 2 • Intermediate Range • Horizon: 18-24 months • Intervals (“buckets”): Monthly and quarterly • Aggregation: Product • Consists of: Demand Forecast, Master Production Schedule (MPS), Rough Cut Capacity Plan (RCCP) • Supports: Sales, Production, LRR Plans SJSU Bus 140 - David Bentley

  4. Planning Levels - 3 • Short Range • Horizon: 12 months • Intervals (buckets) : Days and weeks • Aggregation: Item (Part) • Consists of: Material Requirements Plan (MRP), Capacity Requirements Plan (CRP) • Supports: Master Production Schedule SJSU Bus 140 - David Bentley

  5. Planning Levels - 4 • Real Time • Horizon: Now • Intervals (“buckets”): Minutes and days • Aggregation: P.O. line item, Job operation • Consists of: Purchasing system, Production Activity Control (PAC) system • Really a control level SJSU Bus 140 - David Bentley

  6. Strategies for Uneven Demand • Level Capacity • Steady rate of output • Minimal or no layoffs or hiring • Inventories and/or backlogs • Chase Demand • “Hire and fire” • Varying output rates • Minimal inventory and managed backlog SJSU Bus 140 - David Bentley

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