The Aggregate Planning Problem •Given the demand forecast for each period in the planning horizon •Determine the production level, inventory level, and the capacity level for each period that maximizes the firm's (supply chain's) profit over the planning horizon •Specify the planning horizon (typically 318Aggregate Planning Combines appropriate resources into general terms Part of a larger production planning system Disaggregation breaks the plan down into greater detail Disaggregation results in a master production schedule Aggregate Planning Strategies 1 Use inventories to absorb changes in demand 2 Accommodate changes by varyingIn order to satisfy changes in customer demand, the firm must raise or lower inventory levels in anticipation of increased or decreased levels of forecast demand
Aggregate Planning Chapter 11 Mis 373 Basic Operations Management Ppt Download