Title: Aggregate Production Planning (APP)
1Aggregate Production Planning (APP)
Aggregate Production Planning (APP)
Demand Planning and Forecasting
A macro approach to operational planning that
focuses on overall capacity. APP links
higher-level facility planning to lower level
scheduling decisions within a medium-term
planning horizon (2 to 18 months).
Master Production Scheduling (MPS)
Material Requirements Planning (MRP)
Capacity Planning (CRP)
Material and Capacity Plans
Shop Floor Control
Purchasing
2APP (cont)
- Role of Aggregate Planning
- Long-term planning function
- Strategic preparation for tactical actions
- Aggregate Planning Issues
- Staffing -hiring, firing, training
- Procurement - supplier contracts for materials,
components - Sub-Contracting - capacity vendoring
- Marketing - promotional activities
3Basic Aggregate Planning (cont.)
Cotton Shirts
Mens
Womens
Boys
Girls
Style B
Style C
Style A
Week1
Week2
Week3
Week4
Week5
4Basic Aggregate Planning
- Problem project production of single product
over planning horizon. - Inputs
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7Pure APP Planning Strategies
Demand
Production
Units
Time
8Pure APP Planning Strategies
Demand Production
Units
Time
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19Demand Constraints
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31Conclusions
- No single AP model is right for every situation
- Simplicity promotes understanding
- Linear programming is a useful AP tool
- Robustness matters more than precision
- Formulation and Solution are not separate
activities.