Aggregate Planning Today

Aggregate Planning Today

1. medium-range capacity planning

   • Time horizon: 3 to 18 months
   • Goal: Achieve a production plan to satisfy demand
     • Appropiate resource input and output levels
     • Influencing demand and supply
   • Basis to budget development

2. Principal Characteristics

   • 12 months of time horizon
     • Updating of the plan periodically
   • Demand is assumed to be fluctuating, uncertain or seasonal
   • Possibility of changing demand and supply variables
   • it may achueve low inventories, good labor relations, low costs, flexibility and good customer services
   • Facilities are considered fixed

3. Decision options

   • Two types
     • Modifying demand
       • Pricing
       • Advertising and production
       • Backlog or reservation
       • Development of complementary products
     • Modifying supply
       • Hiring and layoff of employees
       • Overtime and undertime
       • Using Part-time/temporary labour
       • carrying inventory
       • subcontracting
       • making operative arrangements

4. Techniques for planning

   • Informal techniques
   • Mathematical techniques
   • Linear programming and extensions
   • Linear decision rule
   • Heuristic and simulation techniques
   • Management coefficients approach
   • Simulation search procedures

5. Antoine LORET A01675289, María Fernanda Villagómez Arcos A01165912, Andrés García-Dobarganes Michel A01204193

6. Still developing the process

   • Reformulate the problem
   • Find new frameworks
   • Improving production planning

7. Basic Strategies

   • maintain a level workforce
   • maintain a steady output rate
   • match demand period by period
   • Use a combination of decision variables.

8. Aggregate-planning costs

   • Hiring and layoff costs;
   • overtime and undertime costs
   • Inventory carrying costs
   • subcontracting costs
   • Cost of stockout and back order
   • part-time labour costs