Production and Operation Managements Chapter 3 Aggregate Planning Professor JIANG Zhibin Department of Industrial Engineering Management Shanghai Jiao Tong University
Production and Operation Managements Professor JIANG Zhibin Department of Industrial Engineering & Management Shanghai Jiao Tong University Chapter 3 Aggregate Planning
⑧ Chapter 3 Aggregate Planning Contents .Introduction Aggregate Units of Production; .Costs in aggregate Planning; •A Prototype Problem; .Solution of Aggregate Planning Problem by LP;
Chapter 3 Aggregate Planning Contents •Introduction •Aggregate Units of Production; •Costs in Aggregate Planning; •A Prototype Problem; •Solution of Aggregate Planning Problem by LP;
Introduction(1) Aggregate planning,also called macro planning, decides how many employees the firm should retain and,for a manufacturing firm,the quantity and the mix of products to be produced. Assumption:demand is deterministic,or known in advance
Introduction(1) • Aggregate planning, also called macro planning, decides how many employees the firm should retain and, for a manufacturing firm, the quantity and the mix of products to be produced. • Assumption: demand is deterministic, or known in advance
Introduction(1) New one in dynamic environment:manufacturing is outsourced (Supply Chain) -Sun Microsystems is a successful example; -Focus on product innovation and design rather than manufacturing;
Introduction(1) • New one in dynamic environment: manufacturing is outsourced (Supply Chain) Sun Microsystems is a successful example; Focus on product innovation and design rather than manufacturing;
Introduction(2) Aggregate planning involves several basic competing objectives. Make frequent and large changes in size of labor force:a chase strategy to react quickly to anticipated changes in demand,cost effective,but a poor long-term strategy; Retain a stable workforce:results in larger buildups of inventory during period of low demand; Develop a production plan for a firm to maximize profit over the planning horizon subject to constraints on capacity. AP methodology is designed to translate demand forecast into blueprint for planning staffing and production level for a firm over a predetermined planning horizon;
Introduction(2) • Aggregate planning involves several basic competing objectives. Make frequent and large changes in size of labor force: a chase strategy to react quickly to anticipated changes in demand, cost effective, but a poor long-term strategy; Retain a stable workforce: results in larger buildups of inventory during period of low demand ; • Develop a production plan for a firm to maximize profit over the planning horizon subject to constraints on capacity. • AP methodology is designed to translate demand forecast into blueprint for planning staffing and production level for a firm over a predetermined planning horizon;