Which of the following is not a constraint the aggregate planner needs to consider?
With the primary goals of minimizing costs and maximizing profits, the strategic objectives of aggregate planning include: Show
Minimize inventory investment – Aggregate planning software optimally balances efforts to minimize the cost of inventory management and storage with efforts to ensure sufficient inventory to meet both independent and dependent demands through material resource planning. Minimize workforce demand and fluctuation – Aggregate planning software uses data from demand forecasts and material resource planning to calculate an optimal workforce plan – one that balances the cost of onboarding/layoffs due to workforce fluctuation with the cost of worker idle time and/or overtime. Maximize production rates while minimizing fluctuation – Aggregate planning software analyzes production capacity versus demand forecasts to maximize the overall production rate while avoiding periods of idle capacity. Maximize facility and production equipment utilization – Aggregate planning software accounts for available production equipment and facilities, and targets maximum utilization over the aggregate planning period. To achieve these objectives, aggregate planning software may employ one of two approaches, or a combination of both. The chase approach attempts to match production capacity with demand. With this approach, a manufacturer adjusts resource procurement and availability to keep up with fluctuations in customer (or make-to-stock) orders. This approach enables a manufacturer to minimize inventory levels and maximize resource utilization, but the manufacturer must contend with costs associated with adjustments to capacity: workforce onboarding and layoffs or underutilized floor space, for example. The level approach to aggregate production planning, on the other hand, avoids the cost of adjustments by keeping production rates steady. This means that the manufacturer builds up inventory at times of lower demand to be able to fulfill orders during periods of peak demand. Alternatively, the manufacturer may maintain a steady level of workforce and production capacity and ramp up productivity during periods of high demand. In either case, the level approach encounters costs associated with inventory management, idle capacity, workforce idle time and/or overtime, and other expenses associated with fluctuating utilization of resources. CHAPTER 12 Objectives 1. What is aggregate planning? In production planning, it is the intermediate-range capacity planning that typically covers a time horizon of 2 to 12 months.
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List the capacity options in aggregate planning 5. List the main strategies for meeting uneven demand. 6.
Name two important factors that influence choice of strategy.
Briefly describe these scheduling phases: Slushy- is the second phase, and its time fence is usually a few periods beyond the frozen phase.| Liquid-is the farthest out on the time horizon. What are the four things needed for aggregate planning?8.1 Aggregate Planning. A logical overall unit for measuring sales and output.. A forecast of demand for a reasonable intermediate planning period in these aggregate terms.. A method for determining the costs.. A model that combines forecasts and costs so that scheduling decisions can be made for the planning period.. What are the 5 aggregate planning strategies?6 types of aggregate planning strategies. Type 1: Pricing differentials and promotions. Managers use pricing differentials and promotions to boost demand to match available capacity. ... . Type 2: Back ordering. ... . Type 3: Generating new demand. ... . Type 4: Seasonal hiring. ... . Type 5: Subcontracting. ... . Type 6: Building up inventory.. What are 3 types of aggregate plan?3 Types of Aggregate Planning Strategies. Level Strategy: The goal of an aggregate planning strategy is to keep the production rate and the workforce level. ... . Chase Strategy: As the name implies, you are chasing market demand. ... . Hybrid Strategy: There is a third alternative, which is a hybrid of the previous two strategies.. Which one is not an output of aggregate planning?Overtime is not considered a variable in aggregate planning. Aggregate planners are concerned with the quality and quantity of expected demand.
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