Professional Documents
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Aggregate Planning
Aggregate Planning
Control
Dr. Mohammed Othman
Faculty of Engineering and IT
Production Planning System
2
Learning Objectives
© Wiley 2010 3
Planning System Questions
• Priority
– What is needed, when, and how much
• Capacity
– Capability to produce what is needed and when
Priority Capacity
(Demand) (Resources)
Major levels of Planning and Control
Strategic
Business Plan
Material
Requirements
Plan
Strategic Annual
Business Plan
No. of Units
Demand
Time
Chase Production:
No. of Units
Chase Production
Demand
Time
Level Production:
No. of Units
Level Production
Demand
Time
Level Production:
No. of Units
USE Inventory
Level Production
CREATE Inventory
Demand
Time
Hybrid:
No. of Units
Hybrid
Demand
Time
Subcontracting, backlogging
Production
Time
Introductory Example
General procedure:
1. Total the forecast demand for the planning horizon
2. Determine opening inventory and desired ending
inventory
3. Calculate the total production required as:
Total production = total forecast + backorders
+ ending inventory – opening inventory
4. Calculate the production required each period
5. Calculate the ending inventory for each period
Numerical Example:
Period 1 2 3 4 5 6 Total
Period 1 2 3 4 5 6 Total
Period 1 2 3 4 5 6 Total
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Chase Strategy
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Level Production
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Level Production: No Backorders
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Remarks
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Continue
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