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    SCA Lecture 16

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    Abhilash Kumar Singh
    Aggregate planning enables comprehensive viewing of supply needs to meet product demand over a planning period. Ordering supplies in bulk allows qualifying for discounts and avoiding shortages. Key components are demand forecasting using historical data, evaluating production capacity while allowing for limitations, and using advanced planning and scheduling systems to optimize schedules balancing efficiency and delivery.

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    SCA Lecture 16

    Uploaded by

    Abhilash Kumar Singh
    28 views36 pages
    Aggregate planning enables comprehensive viewing of supply needs to meet product demand over a planning period. Ordering supplies in bulk allows qualifying for discounts and avoiding shortages. Key components are demand forecasting using historical data, evaluating production capacity while allowing for limitations, and using advanced planning and scheduling systems to optimize schedules balancing efficiency and delivery.

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    SCA Lecture 16-

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    Aggregate planning enables comprehensive viewing of supply needs to meet product demand over a planning period. Ordering supplies in bulk allows qualifying for discounts and avoiding shortages. Key components are demand forecasting using historical data, evaluating production capacity while allowing for limitations, and using advanced planning and scheduling systems to optimize schedules balancing efficiency and delivery.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    28 views36 pages

    SCA Lecture 16

    Uploaded by

    Abhilash Kumar Singh
    Aggregate planning enables comprehensive viewing of supply needs to meet product demand over a planning period. Ordering supplies in bulk allows qualifying for discounts and avoiding shortages. Key components are demand forecasting using historical data, evaluating production capacity while allowing for limitations, and using advanced planning and scheduling systems to optimize schedules balancing efficiency and delivery.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 36

    Aggregate Planning

    R. Rajesh
    ABV-IIITM Gwalior
    Aggregate Planning
    • This approach enables you to have a
    comprehensive view of the supplies you will need
    in order to meet demand for your products.
    • Through ordering for the entire planning period,
    you can qualify for bulk discounts and ultimately
    avoid shortages.
    • Before implementing aggregate planning into
    your supply chain, it is important to understand
    some of the components within aggregate
    planning and supply chain.
    Solid Demand Forecast
    • It is important to anticipate demand for your
    product before you can plan your supply
    ordering.
    • Using historical data as well as industry trends
    and forecast, you are able to accurately predict
    demand for your products for upcoming months.
    • Your forecast will tell you how much you need to
    product in order to meet demand in order for you
    to know that quantity of supplies you will need to
    maintain productivity.
    Production Capacity
    • The ability to produce depends on machinery,
    work staff and efficiency.
    • You are able to evaluate your production
    department to accurately determine how many
    products you can reasonably produce during the
    period that you are planning for.
    • This could end up being less than demand.
    • Utilizing your production ability to set goals for
    producing products that are realistic.
    • Allow for personnel shortages and machinery
    maintenance.
    Limitations on Capital
    • No matter what quantity of supplies you would
    like to order, you need to take your cash into
    account.
    • You may be limited by what you can afford.
    • If you plan to borrow to buy supplies, include the
    interest costs in your estimates of the profits you
    will make from the products you manufacture.
    • In short, make sure you have the capital to
    purchase the supplies you need.
    Advanced Planning and Scheduling
    (APS) system
    • Aggregate planning is crucial within a manufacturing
    operation that is seeking to improve production
    planning within the production process.
    • Aggregate planning can be implemented with an
    Advanced Planning and Scheduling (APS) system and
    improve operational efficiency within your
    manufacturing operation.
    • Advanced Planning and Scheduling (APS) software
    allows you to have a visual representation of your
    production plan and manipulate areas that are in need
    of efficiency enhancement.
    Advanced Planning and Scheduling
    (APS) system
    • Create optimized schedules balancing
    production efficiency and delivery
    performance
    • Maximize output on bottleneck resources to
    increase revenue
    • Synchronize supply with demand to reduce
    inventories
    • Provide company-wide visibility to capacity
    • Enable scenario data-driven decision making
    Capacity

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