AGGREGATE PLANNING (SCM) Bijay Lal Pradhan, Ph.D.

Size: px
Start display at page:

Download "AGGREGATE PLANNING (SCM) Bijay Lal Pradhan, Ph.D."

Transcription

1 AGGREGATE PLANNING (SCM) Bijay Lal Pradhan, Ph.D.

2 What is Aggregate Planning? DEFINITION

3

4 WHAT IS AGGREGATE PLAN The aggregate production plan (APP) is a long-range materials plan. Since capacity expansion involves the construction of a new facility and major equipment purchases, the aggregate production plan s capacity is usually considered fixed during the planning horizon. The aggregate production plan sets the aggregate output rate, workforce size, utilization and inventory and/or backlog levels for an entire facility.

5 COCA COLA COMPANY Coca-Cola produces nearly 55% of the beverages consumed in the Nepal. Matches fluctuating demand by brand to specific plant, labor, and inventory capacity High facility utilization requires meticulous cleaning between batches effective maintenance efficient employees efficient facility scheduling

6 AG G R E G AT E P RO D U C T I O N P L A N N I N G R E Q U I R E S Logical overall unit for measuring sales and outputs Forecast of demand for intermediate planning period in these aggregate units Methods for determining costs Model that combines forecasts, and costs so that planning can be made

7 PLANNING Setting goals & objectives Example: Meet demand within the limits of available resources at the least cost Determining steps to achieve goals Example: Hire more workers Setting start & completion dates Example: Begin hiring in Jan.; finish, Mar. Assigning responsibility

8 AGGREGATE PLANNING GOAL Meet Demand Use capacity efficiently Meet inventory policy Minimize cost Labor Inventory Plant and equipment subcontract

9 PLANNING STRATEGY The different strategy will be used according to the tradeoff of workforce size and type, working hours, inventory and backlogs associating the cost Chase Strategy Level Strategy Mixed Strategy

10 CHASE STRATEGY The utility of work-force increases or decreases with an organization s work load. During peak period, organization requires more and more work force. However, the large pool of work force remains underutilized in slack period. In order to keep tight control over expenses, organizations should employ matching number of workers in peak as well as in slack periods. This implies that large work force should be employed ( hired ) in peak period and, excess work force should be laidoff ( fired ) in slack period.

11 S T A B L E W O R K F O R C E VA R I A B L E W O R K H O U R S If frequent hiring/firing is not feasible, then organizations will have a constant pool of work force of adequate size. In slack periods, some of the work force will remain under-utilized. However, some portion of the work force will be engaged in over time as well during peak period. This strategy is far better than frequent hiring and firing of the work force.

12 LEVEL STRATEGY Maintain a stable workforce working at a constant output rate. Shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs. Remains stable working hours, but may increase inventory costs. Produce same amount of products every day Keep work force level constant Vary demand options

13 MIXED STRATEGY Combines 2 or more aggregate scheduling options uses alternatives mixing inventory, back order, capacity change, work force change, etc.

14 SUBCONTRACTING If some portion of the work order is technically complex and, requires special expertise. Also, this work is not of repetitive nature, then organization can award the work to some 3rd party (subcontracting

15 AGGREGATE PLANNING METHODS Graphical & charting techniques Popular & easy-to-understand Trial & error approach Mathematical approaches Transportation method Linear decision rule Management coefficients model Linear Programming Simulation

16 GRAPHICAL APPROACH Develop alternative plans, and examine their total costs Forecast the demand for each period Determine the capacity for regular time, overtime, and subcontracting, for each period Determine the labor costs, hiring and firing costs, and inventory holding costs Consider company policies which may apply to the workers or to stock levels Develop alternative plans, and examine their total costs

17 Unit s CHASE STRATEGY Demand Production Time Copyright 2006 John Wiley & Sons, Inc

18 Units LEVEL STRATEGY Demand Production Time Copyright 2006 John Wiley & Sons, Inc

19 PURE STRATEGIES Example: Bi month Demand Beginning inventory = 200 Maintain at least = 200 Each Period is 2 months Hours Required per unit = 20 Employee hours per period = 352 Starting Employment = 30 Regulatory wage =$ 15 per hour Inventory cost = $ 10 per period Hire cost = $ 400 Fire cost = $ 500 Copyright 2006 John Wiley & Sons, Inc

20 CHASE STRATEGY PERIOD DEMAND EMPL HIRE FIRE PRODUCTION E. INV Copyright 2006 John Wiley & Sons, Inc

21 COST OF CHASE STRATEGY REG. TIME $121,440 $116,160 $142,560 $158,400 $184,800 $147,840 INV. CARRY $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 HIRING COST $0 $0 $2,000 $1,200 $2,000 $0 FIRING COST $3,500 $500 $0 $0 $0 $3,500 TOTAL COST $126,940 $118,660 $146,560 $161,600 $188,800 $153,340 Total cost of chase strategy = $ 8,95.900

22 LEVEL STRATEGY ( ) 6 = 482 PLAN 2 LEVEL STRATEGY PERIOD DEMAND EMPL FIRE 2 PRODUCTION E. INV Copyright 2006 John Wiley & Sons, Inc

23 LEVEL STRATEGY REG. TIME $147,840 $147,840 $147,840 $147,840 $147,840 $147,840 INV. CARRY $2,928 $4,056 $4,284 $3,912 $2,740 $2,668 HIRING COST FIRING COST $1,000 $0 $0 $0 $0 $0 TOTAL COST $151,768 $151,896 $152,124 $151,752 $150,580 $150,508 Total cost of level strategy = $ 9,08,628

24 MIXED STRATEGY PERIOD DEMAND EMPL HIRE 8 FIRE 6 PRODUCTION E. INV

25 MIXED STRATEGY REG. TIME $126,720 $126,720 $126,720 $168,960 $168,960 $168,960 INV. CARRY $2,224 $2,648 $2,172 $2,504 $2,036 $2,668 HIRING COST $0 $0 $0 $3,200 $0 $0 FIRING COST $3,000 $0 $0 $0 $0 $0 TOTAL COST $131,944 $129,368 $128,892 $174,664 $170,996 $171,628 Total cost of mixed strategy = $ 9,07,492

26 MIXED STRATEGY Combination of Level Production and Chase Demand strategies Examples of management policies no more than x% of the workforce can be laid off in one quarter inventory levels cannot exceed x dollars Many industries may simply shut down manufacturing during the low demand season and schedule employee vacations during that time

27

Aggregate Planning. Learning Objectives. Stages of Planning. Dr. Richard Jerz

Aggregate Planning. Learning Objectives. Stages of Planning. Dr. Richard Jerz Aggregate Planning Dr. Richard Jerz 1 Learning Objectives Aggregate planning How to do aggregate planning Graphic technique for aggregate planning Mathematical techniques for aggregate planning 2 Stages

More information

Aggregate Planning. Nature of Aggregate Planning

Aggregate Planning. Nature of Aggregate Planning Aggregate Planning Nature of Aggregate Planning Costs Decision Processes Nature of Aggregate Planning Macro Planning Bypass the details of individual products No need for individual scheduling of facilities

More information

Aggregate Planning and S&OP

Aggregate Planning and S&OP Aggregate Planning and S&OP 13 OUTLINE Global Company Profile: Frito-Lay The Planning Process Sales and Operations Planning The Nature of Aggregate Planning Aggregate Planning Strategies 1 OUTLINE - CONTINUED

More information

Aggregate Planning (session 1,2)

Aggregate Planning (session 1,2) Aggregate Planning (session 1,2) 1 Outline The Planning Process The Nature of Aggregate Planning Aggregate Planning Strategies Capacity Options Demand Options Mixing Options to Develop a Plan Methods for

More information

Operations Management

Operations Management 12-1 Aggregate Planning Operations Management William J. Stevenson 8 th edition 12-2 Aggregate Planning CHAPTER 12 Aggregate Planning McGraw-Hill/Irwin Operations Management, Eighth Edition, by William

More information

Introduction to Principles of Production Management WS 2012/2013 Chapter 14 Aggregate sales and Operations Planning Presented by Dr. Eng.

Introduction to Principles of Production Management WS 2012/2013 Chapter 14 Aggregate sales and Operations Planning Presented by Dr. Eng. Introduction to Principles of Production Management WS 2012/2013 Chapter 14 Aggregate sales and Operations Planning Presented by Dr. Eng.Abed Schokry Learning Outcomes Explain business planning Explain

More information

AGGREGATE PLANNING PROBLEMS

AGGREGATE PLANNING PROBLEMS AGGREGATE PLANNING PROBLEMS Problem 1. ABC Corporation has developed a forecast for a group of items that has the following seasonal demand pattern. Quarter Demand Cumulative Demand 1 22 22 2 17 39 3 4

More information

Sales and Operations Planning

Sales and Operations Planning Sales and Operations Planning Alessandro Anzalone, Ph.D. Hillsborough Community College, Brandon Campus 1. Purpose of Sales and Operation Planning 2. General Design of Sales and Operations Planning 3.

More information

Antti Salonen KPP227 KPP227 1

Antti Salonen KPP227 KPP227 1 KPP227 KPP227 1 What is Aggregate Planning? Aggregate (or intermediate-term) planning is the process of determining a company s aggregate plan = production plan. The aggregate plan specifies how the company

More information

Planning. Planning Horizon. Stages of Planning. Dr. Richard Jerz

Planning. Planning Horizon. Stages of Planning. Dr. Richard Jerz Planning Dr. Richard Jerz 1 Planning Horizon Aggregate planning: Intermediate-range capacity planning, usually covering 2 to 12 months. Long range Short range Intermediate range Now 2 months 1 Year 2 Stages

More information

National Institute of Technology Calicut Department of Mechanical Engineering PRODUCTION PLANNING (AGGREGATE PLANNING)

National Institute of Technology Calicut Department of Mechanical Engineering PRODUCTION PLANNING (AGGREGATE PLANNING) PRODUCTION PLANNING (AGGREGATE PLANNING) Concerned with the overall operations of an organisation over a specified time horizon Determines the efficient way of responding (allocating resources) to market

More information

Supply Chain Decisions

Supply Chain Decisions Aggregate Planning Supply Chain Decisions Strategic Level Long Term Corporate objectives Capacity/Facilities Markets to operate Location Resources Tactical Medium Term Aggregate planning Resource allocation

More information

Planning. Dr. Richard Jerz rjerz.com

Planning. Dr. Richard Jerz rjerz.com Planning Dr. Richard Jerz 1 Planning Horizon Aggregate planning: Intermediate range capacity planning, usually covering 2 to 12 months. Long range Short range Intermediate range Now 2 months 1 Year 2 Stages

More information

LINEAR PROGRAMMING APPROACHES TO AGGREGATE PLANNING. Linear programming is suitable to determine the best aggregate plan.

LINEAR PROGRAMMING APPROACHES TO AGGREGATE PLANNING. Linear programming is suitable to determine the best aggregate plan. LINEAR PROGRAMMING APPROACHES TO AGGREGATE PLANNING Linear programming is suitable to determine the best aggregate plan. Recall that linear programming assumes all variables are continuously divisible.

More information

Planning. Planning Horizon. Stages of Planning. Dr. Richard Jerz

Planning. Planning Horizon. Stages of Planning. Dr. Richard Jerz Planning Dr. Richard Jerz 1 Planning Horizon Aggregate planning: Intermediate range capacity planning, usually covering 2 to 12 months. Long range Short range Intermediate range Now 2 months 1 Year 2 Stages

More information

Chapter 16 Sl Sales and doperations Planning

Chapter 16 Sl Sales and doperations Planning Chapter 16 Sl Sales and doperations Planning Aggregate Planning Pure and Mixed Strategies Yield Management for Services Operations Planning Activities Long range Intermediate range Manufacturing Short

More information

Supply Chain Decisions

Supply Chain Decisions Aggregate Planning Supply Chain Decisions Strategic Level Long Term Corporate objectives Capacity/Facilities Markets to operate Location Resources Tactical Medium Term Aggregate planning Resource allocation

More information

Production Planning & Control BMM4823. Aggregate Planning. by Dr. Ahmad Nasser Mohd Rose

Production Planning & Control BMM4823. Aggregate Planning. by Dr. Ahmad Nasser Mohd Rose Production Planning & Control BMM4823 Aggregate Planning by Dr. Ahmad Nasser Mohd Rose nasser@ump.edu.my Chapter Description Aims To understand the importance of aggregate planning in production planning

More information

The lead-time gap. Planning Demand and Supply

The lead-time gap. Planning Demand and Supply Planning Demand and Supply The lead-time gap Reducing the gap by shortening the logistics lead time while simultaneously trying to move the order cycle closer through improved visibility of demand. Copyright

More information

Planning and Scheduling Operations in Dynamic Supply Chain

Planning and Scheduling Operations in Dynamic Supply Chain Planning and Scheduling Operations in Dynamic Supply Chain Sung Joo Bae Associate Professor Yonsei University 14 1 Supply Chain Management 14 2 Supply Chains Tier 3 Poland USA Canada Australia Malaysia

More information

Aggregate Planning Exercise

Aggregate Planning Exercise Aggregate Planning Exercise This exercise occurs in two parts. The first utilizes the work sheet that appears on the next page. This work sheet will be used during lecture to present the basic calculations

More information

Production planning and. Unit 3

Production planning and. Unit 3 1 Production planning and scheduling Unit 3 2 Background Because the aircraft manufacturing industry is highly sensitive to fluctuating demands and to their corresponding impact on production costs, a

More information

Chapter 6 RESOURCE PLANNING SYSTEMS. Prepared by Mark A. Jacobs, PhD

Chapter 6 RESOURCE PLANNING SYSTEMS. Prepared by Mark A. Jacobs, PhD Chapter 6 RESOURCE PLANNING SYSTEMS Prepared by Mark A. Jacobs, PhD LEARNING OBJECTIVES You should be able to: Describe the hierarchical operations planning process in terms of materials planning (APP,

More information

LECTURE 8: MANAGING DEMAND

LECTURE 8: MANAGING DEMAND LECTURE 8: MANAGING DEMAND AND SUPPLY IN A SUPPLY CHAIN INSE 6300: Quality Assurance in Supply Chain Management 1 RESPONDING TO PREDICTABLE VARIABILITY 1. Managing Supply Process of managing production

More information

AGGREGATE PLANNING AND MASTER SCHEDULING

AGGREGATE PLANNING AND MASTER SCHEDULING AGGREGATE PLANNING AND MASTER SCHEDULING (Part 2) Al-Naimi Assistant Professor Industrial Engineering Branch Department of Production Engineering and Metallurgy University of Technology Baghdad - Iraq

More information

PRODUCTION PLANNING SYSTEM CHAPTER 2

PRODUCTION PLANNING SYSTEM CHAPTER 2 9 PRODUCTION PLANNING SYSTEM CHAPTER 2 ANSWERS TO PROBLEMS 2.1 Ending inventory = opening inventory + production demand = 400 + 700 900 = 200 units 2.2 Total working days = 19 + 20 + 21 = 60 Average daily

More information

Operations & Supply Planning

Operations & Supply Planning Operations & Supply Planning PGDM 2017-19 Sales & Operations Planning Vinay Kumar Kalakbandi Assistant Professor Operations Management Survey No. 38, Cherlaguda Village, Shamshabad Mandal, RR District,

More information

Planning for and Recruiting Human Resources

Planning for and Recruiting Human Resources fundamentals of Human Resource Management 4 th edition by R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright CHAPTER 5 Planning for and Recruiting Human Resources McGraw-Hill/Irwin Copyright 2009 by

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The ability of manufacturing to produce goods and services is called: A) production planning. B)

More information

UNIT 11 AGGREGATE PRODUCTION PLANNING

UNIT 11 AGGREGATE PRODUCTION PLANNING UNIT 11 AGGREGATE PRODUCTION PLANNING Aggregate Production Planning Objectives Upon reading this unit you will get to know: Necessity of aggregate planning Linkage between different levels of production

More information

Inventory & Supply Chain Management Prof. Apurva Jain

Inventory & Supply Chain Management Prof. Apurva Jain Inventory & Supply Chain Management Prof. Apurva Jain Module 2: Session 5-8 Manufacturing Planning Module 2 Learning Objectives 1. Forecasting 2. Making 3. Delivering 4. Sourcing Identify medium-term mfg./inventory

More information

Project and Production Management Prof. Arun Kanda Department of Mechanical Engineering Indian Institute of Technology, Delhi

Project and Production Management Prof. Arun Kanda Department of Mechanical Engineering Indian Institute of Technology, Delhi Project and Production Management Prof. Arun Kanda Department of Mechanical Engineering Indian Institute of Technology, Delhi Lecture - 36 Aggregate Production Planning: Basic Concepts In the last two

More information

Optimal Production Planning in Wiring Harness Assembling Process Using Mixed Integer Linear Programming

Optimal Production Planning in Wiring Harness Assembling Process Using Mixed Integer Linear Programming Optimal Production Planning in Wiring Harness Assembling Process Using Mixed Integer Linear Programming Donatus Feriyanto Simamora Magister Management Technology Program Institut Teknologi Sepuluh Nopember

More information

CHAPTER 2. Job Order Costing. Brief A B Study Objectives Questions Exercises Do It! Exercises Problems Problems

CHAPTER 2. Job Order Costing. Brief A B Study Objectives Questions Exercises Do It! Exercises Problems Problems CHAPTER 2 Job Order Costing ASSIGNMENT CLASSIFICATION TABLE Brief A B Study Objectives Questions Exercises Do It! Exercises Problems Problems 1. Explain the characteristics 1, 2, 3, 4 and purposes of cost

More information

Slide Chapter 11 Capacity management

Slide Chapter 11 Capacity management Slide 11.1 Chapter 11 Capacity management Slide 11.2 Capacity management Direct Design Operations management Develop Capacity management Deliver The market requires the availability of products and services

More information

PRODUCTION PLANNING AND CONTROL

PRODUCTION PLANNING AND CONTROL 5 PRODUCTION PLANNING AND CONTROL CHAPTER OUTLINE 5.1 Introduction and Meaning 5.2 Need for Production Planning and Control 5.3 Objectives of PP & C 5.4 Phases of PP & C 5.5 Functions of PP & C 5.6 Operations

More information

Aggregate Production Planning (App) for Blister Packing Machines System in Pakistan and the Constraints Effecting App

Aggregate Production Planning (App) for Blister Packing Machines System in Pakistan and the Constraints Effecting App Aggregate Production Planning (App) for Blister Packing Machines System in Pakistan and the Constraints Effecting App M.A Iqbal a, S. Badshah b and N.Rahman c a razahr117@gmail.com, b saeed.badshah@iiu.edu.pk,

More information

Inventory Control in Supply Chain Management: Concept and Workshop

Inventory Control in Supply Chain Management: Concept and Workshop .. Inventory Control in Supply Chain Management: Concept and Workshop Oran Kittithreerapronchai 1 1 Department of Industrial Engineering, Chulalongkorn University Bangkok 10330 THAILAND last updated: November

More information

Aggregate Production Planning Framework in a Multi- Product Factory

Aggregate Production Planning Framework in a Multi- Product Factory Aggregate Production Planning Framework in a Multi- Product Factory Ignatio Madanhire School of Engineering Management, University of Johannesburg, Johannesburg, South Africa OR Department of Mechanical

More information

PRODUCTION PLANNING ANDCONTROL AND COMPUTER AIDED PRODUCTION PLANNING Production is a process whereby raw material is converted into semi-finished products and thereby adds to the value of utility of products,

More information

Aggregate Planning and Master Scheduling

Aggregate Planning and Master Scheduling Operations Strategy C h a p t e r 7 Aggregate Planning and Master Scheduling L E A R N I N G O B J E C T I V E S After reading this chapter, you will be able to: LO 7.1 Explain what aggregate planning

More information

Using Transportation Model for Aggregate Planning: A Case Study in Soft Drinks Industry

Using Transportation Model for Aggregate Planning: A Case Study in Soft Drinks Industry Journal of Logistics Management 218, 7(1): 11-46 DI: 1.5923/j.logistics.21871.2 Using Transportation Model for Aggregate Planning: A Case Study in Soft Drinks Industry Suhada. Tayyeh *, Saffa J. Abdul-Hussien

More information

School of Business. Unit- 8 Page- 204

School of Business. Unit- 8 Page- 204 Capacity Planning 8 Unit Introduction Capacity Planning is vital in operations management. Capacity is the rate of productive capability of a facility. Capacity decisions need acute and careful attention

More information

CHAPTER 2. Job Order Costing 1, 2, 3, 4 5, 6, 7, 8 1, 2, 3, 4

CHAPTER 2. Job Order Costing 1, 2, 3, 4 5, 6, 7, 8 1, 2, 3, 4 CHAPTER 2 Job Order Costing ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Explain the characteristics and purposes of cost accounting.

More information

Business Systems Operations Management

Business Systems Operations Management Business Systems Operations Management Facilitator: Dr. Jonathan Farrell 1 This Evening s s Program Capacity Planning & Control Aggregate Planning Capacity versus Demand The Planning Process Managing Capacity

More information

Operations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology, Madras

Operations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology, Madras Operations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology, Madras Module - 01 Lecture - 08 Aggregate Planning, Quadratic Model, Demand and

More information

Planning Production Capacity Optimisation with Rough Cut Capacity Planning

Planning Production Capacity Optimisation with Rough Cut Capacity Planning SOCIAL SCIENCES & HUMANITIES Journal homepage: http://www.pertanika.upm.edu.my/ Planning Production Capacity Optimisation with Rough Cut Capacity Planning Sarjono, H.*, Kusuma, V., Hamali, S. and Mulyono

More information

Aggregate Production Planning For A Pump Manufacturing Company: Level Strategy

Aggregate Production Planning For A Pump Manufacturing Company: Level Strategy Aggregate Production Planning For A Pump Manufacturing Company: Level Strategy Anand Jayakumar A 1, Krishnaraj C 2, Aravinth Kumar A 3 1Assitant Professor, Department of Mechanical Engineering, SVS College

More information

ACTIVITY SCHEDULING IN THE DYNAMIC, MULTI-PROJECT SETTING: CHOOSING HEURISTICS THROUGH DETERMINISTIC SIMULATION. Robert C. Ash

ACTIVITY SCHEDULING IN THE DYNAMIC, MULTI-PROJECT SETTING: CHOOSING HEURISTICS THROUGH DETERMINISTIC SIMULATION. Robert C. Ash Proceedings of the 999 Winter Simulation Conference P. A. Farrington, H. B. Nembhard, D. T. Sturrock, and G. W. Evans, eds. ACTIVITY SCHEDULING IN THE DYNAMIC, MULTI-PROJECT SETTING: CHOOSING HEURISTICS

More information

Best Practices in Demand and Inventory Planning

Best Practices in Demand and Inventory Planning W H I T E P A P E R Best Practices in Demand and Inventory Planning for Chemical Companies Executive Summary In support of its present and future customers, CDC Software sponsored this white paper to help

More information

Optimizing Production Process through Production Planning and Inventory Management in Motorcycle Chains Manufacturer

Optimizing Production Process through Production Planning and Inventory Management in Motorcycle Chains Manufacturer ComTech: Computer, Mathematics and Engineering Applications, 9(2), December 2018, 43-50 DOI: 10.21512/comtech.v9i2.4723 P-ISSN: 2087-1244 E-ISSN: 2476-907X Optimizing Production Process through Production

More information

Hybrid Model applied in the Semiconductor Production Planning

Hybrid Model applied in the Semiconductor Production Planning , March 13-15, 2013, Hong Kong Hybrid Model applied in the Semiconductor Production Planning Pengfei Wang, Tomohiro Murata Abstract- One of the most studied issues in production planning or inventory management

More information

Chapter 6 Planning and Controlling Production: Work-in-Process and Finished-Good Inventories. Omar Maguiña Rivero

Chapter 6 Planning and Controlling Production: Work-in-Process and Finished-Good Inventories. Omar Maguiña Rivero Chapter 6 Planning and Controlling Production: Work-in-Process and Finished-Good Inventories Learning Objectives At the end of the class the student will be able to: 1. Describe the production budget process

More information

Business case studies. (Logistic and production models)

Business case studies. (Logistic and production models) Business case studies (Logistic and production models) 1. Logistics planning in the food industry The logistic system of the food manufacturing company consists of a network whose nodes represent suppliers

More information

Best practices in demand and inventory planning

Best practices in demand and inventory planning whitepaper Best practices in demand and inventory planning WHITEPAPER Best Practices in Demand and Inventory Planning 2 about In support of its present and future customers, Aptean sponsored this white

More information

Supply Planning S&OP Using SAP APO (SCM) Sriram Ramaswamy, PepsiCo

Supply Planning S&OP Using SAP APO (SCM) Sriram Ramaswamy, PepsiCo Supply Planning S&OP Using SAP APO (SCM) Sriram Ramaswamy, PepsiCo Learning Points PepsiCo Overview S&OP process Use of APO for S&OP Key Lessons Learned Question & Answer Agenda LEARNING POINTS How to

More information

IV/IV B.Tech (Mech. Engg.) 7th sem, Regular Exam, Nov Sub: OPERATIONS MANAGEMENT [14ME705/A] Scheme of valuation cum Solution set

IV/IV B.Tech (Mech. Engg.) 7th sem, Regular Exam, Nov Sub: OPERATIONS MANAGEMENT [14ME705/A] Scheme of valuation cum Solution set IV/IV B.Tech (Mech. Engg.) 7th sem, Regular Exam, Nov 2017 Sub: OPERATIONS MANAGEMENT [14ME705/A] Scheme of valuation cum Solution set 1 1 x 12 = 12 M a) Forecasts are estimates of occurrence, timing or

More information

Modeling and Optimization of Aggregate Production Planning - A Genetic Algorithm Approach

Modeling and Optimization of Aggregate Production Planning - A Genetic Algorithm Approach Modeling and Optimization of Aggregate Production Planning - A Genetic Algorithm Approach B. Fahimnia, L.H.S. Luong, and R. M. Marian Abstract The Aggregate Production Plan (APP) is a schedule of the organization

More information

Manufacturing Resource Planning

Manufacturing Resource Planning Outline Manufacturing Resource Planning MRP The Strategic Importance of Short- Term Scheduling Scheduling Issues Forward and Backward Scheduling Scheduling Criteria Outline Continued Scheduling Process-Focused

More information

Yuji Yamamoto PPU411. Today s topic

Yuji Yamamoto PPU411. Today s topic Yuji Yamamoto PPU411 Today s topic What is operations planning and scheduling? How to cope with mismatch between demand and supply? Production planning Scheduling Job shop scheduling theories 1 Production

More information

A typical manufacturing plant

A typical manufacturing plant CHAPTER6: PRODUCTION PLANNING & CONTROL Production planning is concerned with the determination of production, inventory, and work force levels to meet fluctuating demand A typical manufacturing plant

More information

Forecasting Survey. How far into the future do you typically project when trying to forecast the health of your industry? less than 4 months 3%

Forecasting Survey. How far into the future do you typically project when trying to forecast the health of your industry? less than 4 months 3% Forecasting Forecasting Survey How far into the future do you typically project when trying to forecast the health of your industry? less than 4 months 3% 4-6 months 12% 7-12 months 28% > 12 months 57%

More information

Sales and Operations Planning Overview

Sales and Operations Planning Overview Sales and Operations Planning Overview J. E. Boyer Company, Inc. John E. Boyer, Jr., President Copyright 2009 by J. E. Boyer Company, Inc. No portion of this article may be reproduced in whole or in part

More information

INTI COLLEGE MALAYSIA DIPLOMA IN ENGINEERING PROGRAMME EGR 286 : PRODUCTION PLANNING & CONTROL FINAL EXAMINATIION : AUGUST 2002 SESSION

INTI COLLEGE MALAYSIA DIPLOMA IN ENGINEERING PROGRAMME EGR 286 : PRODUCTION PLANNING & CONTROL FINAL EXAMINATIION : AUGUST 2002 SESSION EGR286 (F) / Page 1 of 5 INTI COLLEGE MALAYSIA DIPLOMA IN ENGINEERING PROGRAMME EGR 286 : PRODUCTION PLANNING & CONTROL FINAL EXAMINATIION : AUGUST 2002 SESSION This paper consists of SEVEN (7) questions.

More information

Aggregate Production Planning For A Pump Manufacturing Company: Chase Strategy

Aggregate Production Planning For A Pump Manufacturing Company: Chase Strategy Aggregate Production Planning For A Pump Manufacturing Company: Chase Strategy Anand Jayakumar A 1, Krishnaraj C 2, Raghunayagan P 3 1Assistant Professor, Dept of Mech Engg, SVS College of Engineering,

More information

Optimizing Production Process through Production Planning and Inventory Management in Motorcycle Chains Manufacturer

Optimizing Production Process through Production Planning and Inventory Management in Motorcycle Chains Manufacturer ComTech: Computer, Mathematics and Engineering Applications, 9(2), December 2018, 43-50 DOI: 10.21512/comtech.v9i2.4723 P-ISSN: 2087-1244 E-ISSN: 2476-907X Optimizing Production Process through Production

More information

Workforce Evolution & Optimization Modeling and Optimization for smarter long-term workforce planning

Workforce Evolution & Optimization Modeling and Optimization for smarter long-term workforce planning Mayank Sharma, Ph. D. Business Analytics and Mathematical Science IBM Research Workforce Evolution & Optimization Modeling and Optimization for smarter long-term workforce planning Using Analytics to Optimize

More information

Operations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology Madras

Operations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology Madras Operations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology Madras Lecture - 5 Aggregate Planning, Tabular Method, Linear Programming (Refer

More information

7 ways to improve your Production Planning using SAP Business One integration

7 ways to improve your Production Planning using SAP Business One integration 7 ways to improve your Production Planning using SAP Business One integration At the core of any business' success story, you will find sound planning. It goes without saying that planning is the most

More information

Program Evaluation and Review Technique (PERT)

Program Evaluation and Review Technique (PERT) Program Evaluation and Review Technique (PERT) PERT Bar charts and CPM networks assume all activity durations are constant or deterministic. The assumption of constant durations may not be realistic because

More information

There are three options available for coping with variations in demand:

There are three options available for coping with variations in demand: Module 3E10 Operations management for Engineers - Crib 1 (a) Define the theoretical capacity of a manufacturing line. Explain why the actual capacity of a manufacturing line is often different from its

More information

Building service activities to support a firm's product offerings. Doing the right things to create the most value for the company.

Building service activities to support a firm's product offerings. Doing the right things to create the most value for the company. Glossary CAPITOLO 1 Operations and supply chain management (OSCM) Design, operation, and improvement of the systems that create and deliver the firm's primary products and services. Servitization Building

More information

9. What are the activities within the scope of production planning? 1. Aggregate production planning

9. What are the activities within the scope of production planning? 1. Aggregate production planning UNIT-II PRODUCTION PLANNING AND CONTROL AND COMPUTERISED PROCESS PLANNING 1. Define Process Planning Process planning involves determining the sequence of processing and assembly steps that must be accomplished

More information

Operation Management QUESTION BANK

Operation Management QUESTION BANK 1. Explain forecasting methods 2. Explain classification of inventory Operation Management QUESTION BANK 3. Calculate a and b constants for the given no of births in previous years and cycles so Year 1

More information

What Are Labor Shortages and How Do They Arise?

What Are Labor Shortages and How Do They Arise? What Are Labor Shortages and How Do They Arise? Burt S. Barnow George Washington University Prepared for the workshop held by the Committee on Science, Technology, Engineering and Mathematics Workforce

More information

Analysis of Various Forecasting Approaches for Linear Supply Chains based on Different Demand Data Transformations

Analysis of Various Forecasting Approaches for Linear Supply Chains based on Different Demand Data Transformations Institute of Information Systems University of Bern Working Paper No 196 source: https://doi.org/10.7892/boris.58047 downloaded: 13.3.2017 Analysis of Various Forecasting Approaches for Linear Supply Chains

More information

CHAPTER 9 SOLUTIONS TO PROBLEMS: SET B PROBLEM 9-1B. Expected unit sales... Unit selling price... Total sales...

CHAPTER 9 SOLUTIONS TO PROBLEMS: SET B PROBLEM 9-1B. Expected unit sales... Unit selling price... Total sales... CHAPTER 9 SOLUTIONS TO PROBLEMS: SET B PROBLEM 9-1B MERCER FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2017 Expected unit sales... Unit selling price... Total sales... Quarter 1

More information

BI360 for Manufacturing Companies. Enabling World-class Decisions for Manufacturing Companies A Solver Vertical Industry White Paper

BI360 for Manufacturing Companies. Enabling World-class Decisions for Manufacturing Companies A Solver Vertical Industry White Paper BI360 for Manufacturing Companies Enabling World-class Decisions for Manufacturing Companies A Solver Vertical Industry White Paper Updated: Nov 2017, Document Version 4 Solver, Inc. www.solverglobal.com

More information

Hatrak Associates Approach LABOR SUPPLY / DEMAND ANALYSES METHODOLOGY

Hatrak Associates Approach LABOR SUPPLY / DEMAND ANALYSES METHODOLOGY Hatrak Associates Approach LABOR SUPPLY / DEMAND ANALYSES METHODOLOGY Workforce Strategy Driving Toward Optimized Labor Supply/Demand Balance UNDERSTAND CONSISTENT STAFFING DYNAMICS STAFFING ISSUES IDENTIFY

More information

Quasi-Fixed Labor Costs and Their Effects on Demand

Quasi-Fixed Labor Costs and Their Effects on Demand CHAPTER 5 Quasi-Fixed Labor Costs and Their Effects on Demand In addition to the questions below, solve the following end of chapter problems: Review questions 1,3-6, 8; Problems 1-3 1. Suppose that workers

More information

Chapter 8: Sourcing and Order Placement

Chapter 8: Sourcing and Order Placement Chapter 8: Sourcing and Order Placement Some buyers rated so far by Better Buying are demonstrating that order fluctuation can be reduced Sourcing and order placement considers two topics--whether supplier

More information

Chapter 13: Economic Challenges Section 1

Chapter 13: Economic Challenges Section 1 Chapter 13: Economic Challenges Section 1 Objectives 1. Differentiate between frictional, seasonal, structural, and cyclical unemployment. 2. Describe how full employment is measured. 3. Explain why full

More information

Manufacturing Information System & Review of Operation Management

Manufacturing Information System & Review of Operation Management .. Manufacturing Information System & Review of Operation Management Oran Kittithreerapronchai 1 1 Department of Industrial Engineering, Chulalongkorn University Bangkok 10330 THAILAND last updated: November

More information

Duration of online examination will be of 1 Hour 20 minutes (80 minutes).

Duration of online examination will be of 1 Hour 20 minutes (80 minutes). Program Name: PGDBA Subject: Production and Operations Management Assessment Name: POM - Exam Weightage: 70 Total Marks: 70 Duration: 80 mins Online Examination: Online examination is a Computer based

More information

AGGREGATE PRODUCTION PLANNING OF WOODEN TOYS USING MODIFIED PARTICLE SWARM OPTIMIZATION

AGGREGATE PRODUCTION PLANNING OF WOODEN TOYS USING MODIFIED PARTICLE SWARM OPTIMIZATION ISSN : 1978-774X Proceeding of 9 th International Seminar on Industrial Engineering and Management AGGREGATE PRODUCTION PLANNING OF WOODEN TOYS USING MODIFIED PARTICLE SWARM OPTIMIZATION, Syarif Hidayat

More information

QUALITY CONTROL MEASURE OF A FIRM'S PERFORMANCE: A CASE STUDY OF A CONSTRUCTION COMPANY

QUALITY CONTROL MEASURE OF A FIRM'S PERFORMANCE: A CASE STUDY OF A CONSTRUCTION COMPANY Nigerian Research Journal of Engineering and Environmental Sciences 436 Original Research Article QUALITY CONTROL MEASURE OF A FIRM'S PERFORMANCE: A CASE STUDY OF A CONSTRUCTION COMPANY *Ogbeide, O.O.,

More information

Using Subcontractor Prequalification to Help Mitigate Risk and Increase Success

Using Subcontractor Prequalification to Help Mitigate Risk and Increase Success Industry Focus. Powerful Results ṬM Using Subcontractor Prequalification to Help Mitigate Risk and Increase Success By Gabriel Valls The rebounding construction market demands even greater discipline and

More information

PRODUCT-MIX ANALYSIS WITH DISCRETE EVENT SIMULATION. Raid Al-Aomar. Classic Advanced Development Systems, Inc. Troy, MI 48083, U.S.A.

PRODUCT-MIX ANALYSIS WITH DISCRETE EVENT SIMULATION. Raid Al-Aomar. Classic Advanced Development Systems, Inc. Troy, MI 48083, U.S.A. Proceedings of the 2000 Winter Simulation Conference J. A. Joines, R. R. Barton, K. Kang, and P. A. Fishwick, eds. PRODUCT-MIX ANALYSIS WITH DISCRETE EVENT SIMULATION Raid Al-Aomar Classic Advanced Development

More information

Topics covered. 1. Components of typical supply chain 2. IT and supply chain 3. Successful supply chain management system 4. SCM planning and strategy

Topics covered. 1. Components of typical supply chain 2. IT and supply chain 3. Successful supply chain management system 4. SCM planning and strategy Proses Bisnis dan Informasi Suryo Widiantoro, ST, MMSI, M.Com(IS) 1 Topics covered 1. Components of typical supply chain 2. IT and supply chain 3. Successful supply chain management system 4. SCM planning

More information

Operations Management: A supply chain approach

Operations Management: A supply chain approach Operations Management: A supply chain approach Dr. Patricia Deflorin 3/12/2012 Page 1 Overview 1. Operation Strategy: Origins and New Directions 2. Supply Chain Management 3. Creating an Edge through New

More information

Executive Sales and Operations Planning

Executive Sales and Operations Planning Executive Sales and Operations Planning Main Street August 7, 2009 Company Presented by: John S. Pennington LOGO President - Adjunct Instructor IU Kelley School of Business - IUPUI Why Plan? Planning is

More information

Part II: Economic Growth. Part I: LRAS

Part II: Economic Growth. Part I: LRAS LRAS & LONG-RUN EQUILIBRIUM - 1 - Part I: LRAS 1) The quantity of real GDP supplied at full employment is called A) hypothetical GDP. B) short-run equilibrium GDP. C) potential GDP. D) all of the above.

More information

Operations and Production Management GPO300

Operations and Production Management GPO300 Operations and Production Management GPO300 8th January 2013 1 first semester 2012 13 GPO300 Operations and Production Management CLASSROOM CODE OF CONDUCT GROUND RULES: Start and end time No cell phones

More information

Logistic and production Models

Logistic and production Models i) Supply chain optimization Logistic and production Models In a broad sense, a supply chain may be defined as a network of connected and interdependent organizational units that operate in a coordinated

More information

Introduction to Information Systems Fifth Edition

Introduction to Information Systems Fifth Edition Introduction to Information Systems Fifth Edition R. Kelly Rainer Brad Prince Casey Cegielski Appendix D Intelligent Systems Copyright 2014 John Wiley & Sons, Inc. All rights reserved. 1. Explain the potential

More information

Any references to company names in sample templates are for demonstration purposes only and are not intended to refer to any actual organization.

Any references to company names in sample templates are for demonstration purposes only and are not intended to refer to any actual organization. LMS Reports LMS Reports copyright 2016 by UniFocus. All rights reserved. This manual, as well as the software described in it, is furnished under license and may be used or copied only in accordance with

More information

SIMULATION AS A TOOL FOR RESOURCE MANAGEMENT. Tarek M. Zayed Daniel W. Halpin

SIMULATION AS A TOOL FOR RESOURCE MANAGEMENT. Tarek M. Zayed Daniel W. Halpin Proceedings of the 2000 Winter Simulation Conference J. A. Joines, R. R. Barton, K. Kang, and P. A. Fishwick, eds. SIMULATION AS A TOOL FOR RESOURCE MANAGEMENT Tarek M. Zayed Daniel W. Halpin Division

More information

How to Boost Workplace Performance (and Profit!) Through Temporary Employees

How to Boost Workplace Performance (and Profit!) Through Temporary Employees How to Boost Workplace Performance (and Profit!) Through Temporary Employees PRIDESTAFF: HOW TO BOOST WORKPLACE PERFORMANCE (AND PROFIT!) THROUGH TEMPORARY EMPLOYEES 1 NEED TO GET MORE DONE? Of course

More information

Maintenance Planning Principles

Maintenance Planning Principles Maintenance Planning Principles Increase Your Workforce without Hiring R. D. (Doc) Palmer, PE, MBA, CMRP Richard Palmer & Associates McGraw-Hill s Maintenance Planning and Scheduling Handbook Case Study:

More information

Talent Management for a New Generation. Peter Cappelli Professor and Director Center for Human Resources The Wharton School

Talent Management for a New Generation. Peter Cappelli Professor and Director Center for Human Resources The Wharton School Talent Management for a New Generation Peter Cappelli Professor and Director Center for Human Resources The Wharton School Why should we care about managing talent? Labor is about 65% costs of typical

More information