OPER-3006EL Chapter Notes - Chapter 13: Master Production Schedule, Aggregate Demand, 18 Months
29 Sep 2018
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An aggregate plan means combining appropriate resources into general, or overall, terms. Therefore, it looks at production in the aggregate, not as a product-by-product breakdown. Ex. aggregate plan for bmw tells the manufacturer how many cars to make but not how many should be two- door vs. four-door or red vs. green. Disaggregation the process of breaking an aggregate plan into greater detail. Master production schedule a timetable that specifies what is to be made and when; addresses the purchasing or production of parts or components needed to make final products. A firm can choose from the following basic capacity (production) options: Managers can increase inventory during periods of low demand to meet high demand in future periods. Hiring or laying off production workers to match production rates. Changes in hr are gradual or none; no abrupt production changes. Keeping a constant workforce while varying working hours. Hiring, layoff, and training costs may be significant.
