CHAPTER 3
AGGREGATE PLANNING
1
, Planning Horizon
• Aggregate planning: Intermediate-range capacity
planning, usually covering 2 to 12 months.
The goal of aggregate planning is to achieve a
production plan that will effectively utilize the
organization’s resources to satisfy expected demand.
Long range
Intermediate
range
Short
range
Now 2 months 1 Year
, Planning Levels
Organizations make capacity decisions on
three levels:
• Short-range plans (Detailed plans)
– Machine loading
– Job assignments
• Intermediate plans (General levels)
– Employment
– Output, and inventories
• Long-range plans
– Long term capacity
– Location / layout
, Planning Sequence
Economic,
Corporate competitive, Aggregate
strategies and political demand
and policies conditions forecasts
Establishes operations
Business Plan
and capacity strategies
Establishes
Aggregate plan
operations capacity
Master schedule Establishes schedules
for specific products
AGGREGATE PLANNING
1
, Planning Horizon
• Aggregate planning: Intermediate-range capacity
planning, usually covering 2 to 12 months.
The goal of aggregate planning is to achieve a
production plan that will effectively utilize the
organization’s resources to satisfy expected demand.
Long range
Intermediate
range
Short
range
Now 2 months 1 Year
, Planning Levels
Organizations make capacity decisions on
three levels:
• Short-range plans (Detailed plans)
– Machine loading
– Job assignments
• Intermediate plans (General levels)
– Employment
– Output, and inventories
• Long-range plans
– Long term capacity
– Location / layout
, Planning Sequence
Economic,
Corporate competitive, Aggregate
strategies and political demand
and policies conditions forecasts
Establishes operations
Business Plan
and capacity strategies
Establishes
Aggregate plan
operations capacity
Master schedule Establishes schedules
for specific products
