JIAOTONG UNIVERSITY 096 Supply Chain Management Lecture 7-2 Integrated Planning Instructor(s) Prof.Jianjun Gao Department of Automation School of Electronic Information and Electrical Engineering SEIEE AU406
Supply Chain Management Instructor(s) SEIEE AU406 + - Integrated Planning Prof. Jianjun Gao Department of Automation School of Electronic Information and Electrical Engineering Lecture 7-2
Outline Role of aggregate planning in a supply chain The aggregate planning problem Aggregate planning strategies Managing Predictable Variability SEIEE AU406 8-2
+ - SEIEE AU406 8-2 Outline Role of aggregate planning in a supply chain The aggregate planning problem Aggregate planning strategies Managing Predictable Variability
Role of Aggregate Planning in a Supply Chain Capacity has a cost,lead times are greater than zero Aggregate planning: process by which a company determines levels of capacity,production,subcontracting,inventory, stockouts,and pricing over a specified time horizon ■ goal is to maximize profit time frame of 3 to 18 months how can a firm best use the facilities it has? SEIEE AU406 8-3
+ - SEIEE AU406 8-3 Role of Aggregate Planning in a Supply Chain Capacity has a cost, lead times are greater than zero Aggregate planning: process by which a company determines levels of capacity, production, subcontracting, inventory, stockouts, and pricing over a specified time horizon goal is to maximize profit time frame of 3 to 18 months how can a firm best use the facilities it has?
Role of Aggregate Planning in a Supply Chain Specify operational parameters over the time horizon: production rate workforce overtime machine capacity level subcontracting backlog inventory on hand All supply chain stages should work together on an aggregate plan that will optimize supply chain performance SEIEE AU406 8-4
+ - SEIEE AU406 8-4 Role of Aggregate Planning in a Supply Chain Specify operational parameters over the time horizon: production rate workforce overtime machine capacity level subcontracting backlog inventory on hand All supply chain stages should work together on an aggregate plan that will optimize supply chain performance
The Aggregate Planning Problem Given the demand forecast for each period in the planning horizon,determine the production level, inventory level,and the capacity level for each period that maximizes the firm's(supply chain's) profit over the planning horizon Specify the planning horizon (typically 3-18 months) Specify the duration of each period Specify key information required to develop an aggregate plan SEIEE AU406 8-5
+ - SEIEE AU406 8-5 The Aggregate Planning Problem Given the demand forecast for each period in the planning horizon, determine the production level, inventory level, and the capacity level for each period that maximizes the firm’s (supply chain’s) profit over the planning horizon Specify the planning horizon (typically 3-18 months) Specify the duration of each period Specify key information required to develop an aggregate plan