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Chappter 15 "Aggregate planning", after studying this chapter you will be able to: 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,. | F O U R T H E D I T I O N Aggregate Planning © The McGraw-Hill Companies, Inc., 2003 chapter 15 DAVIS AQUILANO CHASE PowerPoint Presentation by Charlie Cook 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 total costs as they pertain to aggregate planning. © The McGraw-Hill Companies, Inc., 2003 15– Chapter Objectives (cont’d) Introduce the concept of yield management as a tool for matching supply and demand in service operations. © The McGraw-Hill Companies, Inc., 2003 15– Managerial Issues Translating long-range strategic plans into daily work schedules for the shop floor. Using aggregate planning to develop intermediate-range plans that link the long-range strategic plan and the short-range operational plan. Developing aggregate plans that match the demand for products with the firm’s ability to supply the products and to do so at minimum cost. Coordinating marketing management and operations to develop an aggregate plan that is both effective and efficient. © The McGraw-Hill Companies, Inc., 2003 15– Overview of Operational Planning Activities Long-Range Planning Focuses on strategic issues relation to capacity, process, selection, and plant location. Intermediate-Range Planning Focuses on tactical issues pertaining to aggregate workforce and material requirements for the coming year. Short-Range Planning Addresses day-to-day issues of scheduling workers on jobs at assigned work stations. © The McGraw-Hill Companies, Inc., 2003 15– Aggregate Planning Aggregate Production Planning The process for determining the most cost effective way to match supply and demand over the next 12–18 months. Master . | F O U R T H E D I T I O N Aggregate Planning © The McGraw-Hill Companies, Inc., 2003 chapter 15 DAVIS AQUILANO CHASE PowerPoint Presentation by Charlie Cook 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 total costs as they pertain to aggregate planning. © The McGraw-Hill Companies, Inc., 2003 15– Chapter Objectives (cont’d) Introduce the concept of yield management as a tool for matching supply and demand in service operations. © The McGraw-Hill Companies, Inc., 2003 15– Managerial Issues Translating long-range strategic plans into daily work schedules for the shop floor. Using aggregate planning to develop intermediate-range plans .
