12-1 Aggregate Planning

Aggregate Plan to Master Schedule

Figure 12.4

Aggregate
Planning

Disaggregation

Master
Schedule
12-2 Aggregate Planning

Master Schedule
For the production plan to be translated into meaningful terms for
production, it is necessary to disaggregate the aggregate plan.

This means breaking down the aggregate plan into specific product
requirements in order to determine labor requirements, materials and
inventory requirements.

Aggregate planning facilitate intermediate planning. However, to put the

production plan into operation, one must convert, or disaggregate, those
aggregate units into units of actual products or services that are to be
produced of offered.

The result of disaggregating the aggregate plan is a Master Production

Schedule (MPS).
12-3 Aggregate Planning

Disaggregating the Aggregate Plan

· Master schedule: The result of disaggregating

an aggregate plan; shows quantity and timing
of specific end items for a scheduled horizon.
· Rough-cut capacity planning: Approximate
balancing of capacity and demand to test the
feasibility of a master schedule.
12-4 Aggregate Planning

Master Scheduling

· Master schedule
· Determines quantities needed to meet demand
· Interfaces with
· Marketing
· Capacity planning
· Production planning
· Distribution planning
12-5 Aggregate Planning

Master Scheduler

· Evaluates impact of new orders

· Provides delivery dates for orders
· Deals with problems
· Production delays
· Revising master schedule
· Insufficient capacity
12-6 Aggregate Planning

Master Scheduling Process

Figure 12.6

Inputs Outputs
Beginning inventory Projected inventory
Master
Forecast Master production schedule
Scheduling

Customer orders Uncommitted inventory

12-7 Aggregate Planning

Master Production Schedule

Master Production Schedule (MPS): The schedule indicates

the quantity and timing of planned completed production.

Available to Promise (ATP) inventory: Uncommitted

inventory.

Note that ATP quantity is only calculated for the first week and
for other weeks in which there is an MPS quantity.

Projected on-hand Inventory from Current week’s

inventory
=
previous week
- requirements