Chapter 13: Aggregate Planning

Question 1

Intermediate plans

Answer 1

3-18 months

Ops manager

Question 2

Long range plans

Answer 2

> 18 months
Executive team
Policies and strategies related to issues such as capacity and capital​ investment, facility​ location, new products and​ processes, and supply chain development.

Question 3

Short range plans

Answer 3

Less than 3 months
Supervisors / ops personnel
Job assignments

Question 4

Sales and Operations Planning (S&OP)

Answer 4

When the resources appear to be substantially at odds with market​ expectations, S&OP provides advanced warning to top management.
S&OP is used to determine which plans are feasible in the coming months and which are not
​S&OP is typically done by​ cross-functional teams that align competing constraints.
Aggregate plans use information regarding product lines rather than individual products

Question 5

Aggregate Plan (Requirements)

Answer 5

1. A logical unit for measuring sales and output
2. A model that combines forecasts and costs.
3. A method to determine the relevant costs.

Question 6

Aggregate Planning in services

Answer 6

For service​ organizations, an aggregate schedule ties strategic goals to workforce schedules. The general approach to aggregate scheduling in a service business with highly variable demand involves depleting inventory during peak periods while building it during slack periods.

Techniques:
An​ on-call labor resource that can be added or deleted to meet unexpected demand.
Flexibility of individual worker skills that permits reallocation of available labor.
Accurate scheduling of​ labor-hours to assure quick response to customer demand.

Question 7

Mater Production Schedule

Answer 7

The master production schedule provides input to material requirements planning system
The master production schedule is a timetable that specifies what is to be made and when.
The master production schedule is a result of disaggregation.

Question 8

Disaggregation

Answer 8

the process of breaking an aggregate plan into greater​ detail

Question 9

Aggregate Planning (Objective)

Answer 9

meet forecast demand while minimizing cost over the planning period.

Question 10

Production Planning System (Steps)

Answer 10

Aggregate planning occurs​ first, followed by disaggregation into a master production​ schedule, and finally the scheduling of people and products.

Question 11

Capacity Strategy

Answer 11

Change inventory levels
Varying workforce size by hiring or layoffs
Varying production rates through OT or idle time
Subcontracting
Part-time workers

Question 12

Demand Strategy

Answer 12

Influencing demands
Backordering during high demand periods
Counter seasonal products & service mixing

Question 13

Mixed Strategy

Answer 13

Mixed plans seek a minimum cost via a combination of eight planning options.

Question 14

Chase Strategy

Answer 14

Least amount of inventory

Question 15

Graphical method for aggregate planning

Answer 15

trial-and-error approach that permits many​ solutions

1. Determine the demand in each period.

Question 16

Yield Management

Answer 16

Alternative for revenue management
Operate in Quadrant​ 2: price tends to be​ variable; use tends to be predictable

1. Service or production can be sold in advance of consumption
2. Demand fluctuates
3. Capacity is fixed
4. Demand can be segmented
5. Variable costs are low, fixed costs are high