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    Aggregate Sales and Operations Planning

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    Bhagirathsinh Vala
    The document discusses aggregate sales and operations planning. It describes long, intermediate, and short range planning horizons. The aggregate operations plan balances aggregate demand and production capacity over 3-18 months. Key inputs include competitors, raw materials, demand, capacity, inventory levels, and required production activities. Strategies for meeting demand include chasing demand or leveling production. Aggregate planning also applies to services by managing employee hours to meet off-peak and peak demand.

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    Attribution Non-Commercial (BY-NC)
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    Aggregate Sales and Operations Planning

    Uploaded by

    Bhagirathsinh Vala
    22 views10 pages
    The document discusses aggregate sales and operations planning. It describes long, intermediate, and short range planning horizons. The aggregate operations plan balances aggregate demand and production capacity over 3-18 months. Key inputs include competitors, raw materials, demand, capacity, inventory levels, and required production activities. Strategies for meeting demand include chasing demand or leveling production. Aggregate planning also applies to services by managing employee hours to meet off-peak and peak demand.

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    Aggregate Planning

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    © Attribution Non-Commercial (BY-NC)

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    The document discusses aggregate sales and operations planning. It describes long, intermediate, and short range planning horizons. The aggregate operations plan balances aggregate demand and production capacity over 3-18 months. Key inputs include competitors, raw materials, demand, capacity, inventory levels, and required production activities. Strategies for meeting demand include chasing demand or leveling production. Aggregate planning also applies to services by managing employee hours to meet off-peak and peak demand.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    22 views10 pages

    Aggregate Sales and Operations Planning

    Uploaded by

    Bhagirathsinh Vala
    The document discusses aggregate sales and operations planning. It describes long, intermediate, and short range planning horizons. The aggregate operations plan balances aggregate demand and production capacity over 3-18 months. Key inputs include competitors, raw materials, demand, capacity, inventory levels, and required production activities. Strategies for meeting demand include chasing demand or leveling production. Aggregate planning also applies to services by managing employee hours to meet off-peak and peak demand.

    Copyright:

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    Download as PPT, PDF, TXT or read online from Scribd
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    You are on page 1of 10

    1

    Aggregate Sales and Operations Planning


    2

    Exhibit
    Exhibit14.1
    14.1 Process planning
    Long
    range Strategic capacity planning

    Intermediate Forecasting
    & demand Sales and operations (aggregate) planning
    range management
    Sales plan Aggregate operations plan
    Manufacturing
    Services
    Master scheduling

    Material requirements planning

    Weekly workforce and


    Order scheduling customer scheduling
    Short
    range Daily workforce and customer scheduling
    3

    Sales and Operations Planning


    Activities
     Long-range planning
    – Greater than one year planning horizon
    – Usually performed in annual increments

     Medium-range planning
    – Six to eighteen months
    – Usually with weekly, monthly or quarterly
    increments

     Short-range planning
    – One day to less than six months
    – Usually with weekly or daily increments
    4

    The Aggregate Operations Plan


     Main purpose: Specify the optimal
    combination of
    – production rate (units completed per unit
    of time)
    – workforce level (number of workers)
    – inventory on hand (inventory carried from
    previous period)
     This planning is done over an intermediate-
    range planning period of 3 to18 months
    5

    Balancing Aggregate Demand


    and Aggregate Production Capacity
    10000
    Suppose
    Supposethe thefigure
    figureto
    to
    10000
    8000
    the
    theright
    rightrepresents
    represents 8000 7000
    6000
    forecast
    forecastdemand
    demandin in 6000 5500
    4500
    units
    units 4000

    Now
    Nowsuppose
    supposethis
    this 2000
    lower
    lowerfigure
    figurerepresents
    represents 0
    the
    theaggregate
    aggregatecapacity
    capacity Jan Feb Mar Apr May Jun
    of
    ofthe
    thecompany
    companyto to
    9000
    meet
    meetdemand
    demand 10000
    8000
    8000
    What
    Whatwewewant
    wanttotodo
    doisis 6000
    6000
    4500 4000
    balance
    balanceout
    outthe
    the 4000
    4000
    production
    productionrate,
    rate,
    workforce
    workforcelevels,
    levels,and
    and
    2000

    inventory
    inventorytotomake
    make 0
    these
    these figuresmatch
    figures matchupup
    Jan Feb Mar Apr May Jun
    6

    Required Inputs to the Production


    Planning System
    Competitors’ Raw material Market
    behavior availability demand
    External
    to firm
    External Economic
    capacity Planning
    conditions
    for
    production

    Current Current Inventory Activities Internal


    physical workforce levels required to firm
    capacity for
    production
    7

    Key Strategies for Meeting Demand

     Chase

     Level

     Some combination of the two


    8

    Aggregate Planning Applied


    to Services
     Aggregate Planning majorly deals with
    the hiring full time / part time employee.

     Managing working hours in a way that


    leads to managing off-peak & high peak
    demand.
    9

    Level Scheduling
     It holds production process constant over a
    period of time.
     It is combination of different strategies like

    Chase Strategy & Level Strategy.


     It is mainly effective wherein production is

    constant & repetitive in nature.


    10

    Yield Management
     It is a process of allocating the right type
    of capacity to the right type of customer
    at the right price & time to maximize
    firm’s revenue.

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