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    Capacity Requirement Planning

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    Vi H Ar
    Aggregate planning is a process that develops a preliminary schedule for overall operations 2-18 months in advance. It balances capacity and demand to minimize costs. The plan provides information on required output levels, inventory, and backlogs based on business objectives. It helps fully utilize facilities while avoiding overloading or underloading. The aggregate plan serves as a foundation for short-term planning and helps balance capacity and demand. It considers factors like current and future capacities, workforce, materials, distribution, customer needs, competition, costs, and engineering changes. Alternatives for managing demand and supply include pricing, promotion, inventory, capacity adjustments.

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    Capacity Requirement Planning

    Uploaded by

    Vi H Ar
    299 views11 pages
    Aggregate planning is a process that develops a preliminary schedule for overall operations 2-18 months in advance. It balances capacity and demand to minimize costs. The plan provides information on required output levels, inventory, and backlogs based on business objectives. It helps fully utilize facilities while avoiding overloading or underloading. The aggregate plan serves as a foundation for short-term planning and helps balance capacity and demand. It considers factors like current and future capacities, workforce, materials, distribution, customer needs, competition, costs, and engineering changes. Alternatives for managing demand and supply include pricing, promotion, inventory, capacity adjustments.

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    Aggregate planning is a process that develops a preliminary schedule for overall operations 2-18 months in advance. It balances capacity and demand to minimize costs. The plan provides information on required output levels, inventory, and backlogs based on business objectives. It helps fully utilize facilities while avoiding overloading or underloading. The aggregate plan serves as a foundation for short-term planning and helps balance capacity and demand. It considers factors like current and future capacities, workforce, materials, distribution, customer needs, competition, costs, and engineering changes. Alternatives for managing demand and supply include pricing, promotion, inventory, capacity adjustments.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    299 views11 pages

    Capacity Requirement Planning

    Uploaded by

    Vi H Ar
    Aggregate planning is a process that develops a preliminary schedule for overall operations 2-18 months in advance. It balances capacity and demand to minimize costs. The plan provides information on required output levels, inventory, and backlogs based on business objectives. It helps fully utilize facilities while avoiding overloading or underloading. The aggregate plan serves as a foundation for short-term planning and helps balance capacity and demand. It considers factors like current and future capacities, workforce, materials, distribution, customer needs, competition, costs, and engineering changes. Alternatives for managing demand and supply include pricing, promotion, inventory, capacity adjustments.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Module - 5

    Capacity Planning

    Planning Hierarchies In Operations


    Business Plan Marketing Plan Financial Plan

    Level 1

    Production Plan (rough cut capacity)


    Master Production Schedule

    Level 2

    Material Requirement Plan

    Capacity Requirement Plan

    Detailed scheduling

    Level 3

    Shop Floor Control

    Aggregate Planning

    Introduction
    Aggregate planning is an operational activity which does an aggregate plan for the production process, in advance of 2 to 18 months, to give an idea to management as to what quantity of materials and other resources are to be procured and when, so that the total cost of operations of the organization is kept to the minimum over that period.

    Meaning Of Aggregate Planning


    It is the process of developing, and maintaining a preliminary, approximate schedule of the overall operations of an organization. Aggregate planning is an attempt to balance capacity and demand in such a way that costs are minimized.

    Purpose of aggregate planning


    Information on the required level of O/P to be produced, inventory levels to be maintained and backlogs based on the business plan. Capacity under-utilization may lead to wastage of resources. The companys objectives and its policies regarding its employees should be in line with its aggregate plan.

    Necessary of Aggregate planning


    Its helps in fully load facilities and minimizes over loading and under loading. Make sure enough capacity available to satisfy expected demand. Get the most output for the amount of resources available.

    Importance of aggregate plans


    It serve as a foundation for future short-range type planning. It helps in balancing capacity and demand in such a way that costs are minimized.

    Managerial Importance of Aggregate Plans


    Operations Current Machines Capacities Plans for Future Capacities Workforce capacities Current Staffing Levels Materials Suppliers Capabilities Storage Capacity Material Availability Distribution and Marketing Customer Needs Demand Forecasts Competition

    Aggregate Plan

    Accounting and Finance Cost Data Financial Condition of Firm

    Engineering New Products Product Design Changes Machine

    Human Resources Labour-Market conditions Training Capacity

    Alternatives for managing demand and supply in Aggregate Planning


    For managing demand
    Differential pricing Advertising and sales promotion Backlogs Development of complimentary product

    For managing supply


    Inventory based alternative Capacity adjustment alternatives

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