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    Production Planning: Dr. Everette S. Gardner, JR

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    nhungveo
    This document summarizes key aspects of production planning, including aggregate planning, policy considerations, and applying aggregate planning to services. It defines aggregate planning as choosing production rates, workforce levels, and inventory levels for a 6-18 month horizon. It discusses factors like flexibility, workforce stability, production rate stability, production capacity, and customer service that are considered in aggregate planning policies. It also describes how aggregate planning can be used to balance service capacity with demand in the services sector.

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    Production Planning: Dr. Everette S. Gardner, JR

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    nhungveo
    12 views8 pages
    This document summarizes key aspects of production planning, including aggregate planning, policy considerations, and applying aggregate planning to services. It defines aggregate planning as choosing production rates, workforce levels, and inventory levels for a 6-18 month horizon. It discusses factors like flexibility, workforce stability, production rate stability, production capacity, and customer service that are considered in aggregate planning policies. It also describes how aggregate planning can be used to balance service capacity with demand in the services sector.

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    6 Production Planning

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    This document summarizes key aspects of production planning, including aggregate planning, policy considerations, and applying aggregate planning to services. It defines aggregate planning as choosing production rates, workforce levels, and inventory levels for a 6-18 month horizon. It discusses factors like flexibility, workforce stability, production rate stability, production capacity, and customer service that are considered in aggregate planning policies. It also describes how aggregate planning can be used to balance service capacity with demand in the services sector.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    12 views8 pages

    Production Planning: Dr. Everette S. Gardner, JR

    Uploaded by

    nhungveo
    This document summarizes key aspects of production planning, including aggregate planning, policy considerations, and applying aggregate planning to services. It defines aggregate planning as choosing production rates, workforce levels, and inventory levels for a 6-18 month horizon. It discusses factors like flexibility, workforce stability, production rate stability, production capacity, and customer service that are considered in aggregate planning policies. It also describes how aggregate planning can be used to balance service capacity with demand in the services sector.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    of 8

    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 2

    Policy considerations in aggregate planning


    Flexibility Are work force and inventories maintained at a level sufficient to meet unexpected demand? Work force stability Improves quality, productivity, union relations

    Production rate stability Makes materials planning easier, reduces uncertainty in physical distribution
    Production Planning

    APP.xls

    Policy considerations in aggregate planning (cont.)


    Production capacity Will overtime reduce quality? When will physical capacity (space, machinery, equipment) become inadequate?
    Customer service Have lead time and stock availability goals been met?

    Production Planning

    Aggregate planning in services


    Definition Balancing service capacity with demand Tactics Change operating hours Change staffing Nbr. of workers Full vs. part-time Modify type of service Influence demand Advertising Pricing Build more service outlets
    Production Planning 5

    Aggregate planning in services (cont.)


    Evaluation Waiting time Throughput Service time Nbr. of lost customers

    Production Planning

    Production Inventory System


    #
    #

    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

    25 Day Delay to sense needs, place and transmit orders

    5 Day Delay to sense needs, place and transmit M.O.s

    25 Day Delay for Review and Transmission of orders

    Demand Raw Material Vendor 30 Factory Factory Warehouse 4 1 Company System Under Managerial Control 10 50 Independent Distributors Distributor Inventory 2 5 500 Independent Retailers Retail Inventory 1 1 Ultimate Customer

    35

    Production Planning

    Dynamo.xls

    Response of inventories
    10,000
    Retail inventory (units) -4% 7500 +10% +32% 5000 Retail sales RRR (units/week) -3% Factory warehouse inventory (units) +12% 5 +45% Factory production output (units/week) Distributor inventory (units) 7.5 10

    -10% -15%

    2500

    2.5

    Jan Feb Mar Apr May Jun

    July Aug Sept Oct Nov Dec

    Jan Feb

    Mar Apr May Jun

    0 J

    Production Planning

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