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Production Planning: Dr. Everette S. Gardner, JR
Production Planning: Dr. Everette S. Gardner, JR
Aggregate planning
Definition
Choosing production rates, work force levels, and
inventory levels
Horizon
6-18 months into future
Prerequisites
Forecasting
Company policies on
Max./min. inventories
Hiring/firing
Overtime
Production Planning
APP.xls
Production Planning
Production Planning
5 Day Delay
to sense
needs, place
and transmit
M.O.s
25 Day Delay
for Review
and
Transmission
of orders
Information Flow
Material Flow
Days for transit time
Days to process or to
handle and issue orders
13 Day Delay
for Review
and
Transmission
of orders
Demand
Raw
Material
Vendor
Factory
Factory
Warehouse
35
30
Distributor
Inventory
4
1
Retail
Inventory
2
10
1
5
50 Independent
Distributors
Managerial Control
Production Planning
Ultimate
Customer
1
500 Independent
Retailers
Dynamo.xls
Response of inventories
10
10,000
Retail inventory (units)
-4%
Factory production output (units/week)
+45%
7500
7.5
5000
-10%
+12%
5
-3%
-15%
2500
Production Planning
Jan Feb
0
J