REGNRSG 105 Lecture Notes - Lecture 9: Spreadsheet, Aggregate Demand, Master Production Schedule
Document Summary
Chapter 11 aggregate planning and master scheduling. Aggregate planning = intermediate-range capacity planning, usually covering 2 to 12 months: useful for organizations that experience seasonal, or other variations in demand, goal: achieve a production plan that will effectively utilize the organization"s resources to satisfy demand. Some organizations use the term sales and operations planning" instead of aggregate planning. Sales and operations planning = intermediate-range decisions to balance supply and demand, integrating financial and operations planning. Intermediate decisions relate to general levels of employment, output, and inventories. Aggregate planning is essentially a big-picture" approach to planning. Planners usually try to avoid focusing on individual products or services. Instead, they focus on a group of similar products or services. Why do organizations need to do aggregate planning: planning: it takes time to implement plans, strategic: aggregation is important because it is not possible to predict with accuracy the timing and volume of demand for individual items.