Category Archives: Aggregate Planning

More In-Depth Example: The C&A Company

More In-Depth Example: The C&A Company A firm with pronounced seasonal variation normally plans production with a 12-month time horizon in order to capture the extremes in demand during the busiest and slowest months. Haying said that. we present here an in-depth example using a six-month horizon in  order more clearly to illustrate the general concepts that are involved in aggregate planning.We are given sp

Aggregate Planning Techniques

Aggregate Planning Techniques Companies still use simple trial-and-error charting and graphic methods to develop their aggregate plans. Computer spreadsheets and graphics packages are now available to facilitate the process. A trial-and-error approach involves costing out various production planning alternatives and selecting the one with the lowest cost. In addition to the trial-and-error method, there are more

Aggregate Production Planning

Aggregate Production Planning Again. aggregate production planning is concerned with setting production rates by product group or other broad categories for the intermediate term (6 to 18 months). Note again in Exhibit 15.1 that the aggregate plan precede the master schedule. The main purpose of the aggregate plan is to specify that combination of production rate, workforce level. and the resulting inventory on

Overview of Operational Planning Activities

Overview of Operational Planning Activities Every organization must plan its activities at several levels and operate these as a system. Exhibit 15.1 presents an overall view of planning and shows how aggregate production planning relates to other activities of a manufacturing firm. The time dimension is shown as long. intermediate. and short range. Long-range planning is generally done once a year. focusing on a

Aggregate Planning

Aggregate Planning Each year, Janet Cramer, the plant manager at Polaroid's Integral Film Assembly Operation in Waltham, Massachusetts, struggles to identify  the most efficient way to meet the forecasted sales for film. Janet's plant is the only film assembly operation in the United States. (There is only one other Polaroid film assembly operation in the world, located in The Netherlands.) Historically, annu

Aggregate Planning

Chapter Objectives • Demonstrate how aggregate planning links long-range strategic planning and short-range scheduling. • Present alternate strategies for matching supply and demand: adjusting supply (an operations function) or adjusting demand (a marketing function). • Introduce strategies for developing aggregate plans and ways to identify their strengths and weaknesses. • Define marginal costs and to