Aggregate and Sales Planning

8/10/2019 Aggregate and Sales Planning

1/22

McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc !ll rights reser"e#


2/22


3/22

Sales and Operations Planning

The Aggregate Operations Plan

Examples: Chase and Levelstrategies

OBJECTIVES

16-3


4/22

1-4

Process planning

Strategic capacityplanning

Sales and operations(aggregate) planning

Salesplan

Aggregateoperations

plan

Supply networkplanning

Forecasting anddemand management

Master sc eduling

Material re!uirements

planning

"rder sc eduling

#e icle capacityplanning

#e icle loading#e icle dispatc ing

$are ousereceipt

planning

$eeklywork%orcesc eduling

&aily work%orcesc eduling

Manu%acturing 'ogistics Ser ices

'ongrange

Mediumrange

S ortrange

16-


5/22

Sales and "perations Planning Acti ities

Long-range planning * Greater than one year planning hori on * !s"ally per#ormed in ann"al in$rements

%edi"m-range planning * Six to eighteen months * !s"ally &ith &ee'ly( monthly or )"arterly

in$rements

Short-range planning * One day to less than six months * !s"ally &ith &ee'ly or daily in$rements

16-+


6/22

, e Aggregate "perations Plan

%ain p"rpose: Spe$i#y the optimal$om*ination o# * prod"$tion rate +"nits $ompleted

per "nit o# time, * &or'#or$e level +n"m*er o# &or'ers, * inventory on hand +inventory

$arried #rom previo"s period, Prod"$t gro"p or *road $ategory

+Aggregation, This planning is done over an

intermediate-range planning period o# to1. months

16-6


7/22

alancing Aggregate &emandand Aggregate Production .apacity

0

2000

4000

6000

8000

10000

Jan Feb Mar Apr May Jun

45005500

7000

10000

8000

6000

0

2000

4000

6000

8000

10000


4500 4000

90008000

4000

6000

S"ppose the #ig"re tothe right represents#ore$ast demand in"nits

/o& s"ppose thislo&er #ig"re representsthe aggregate $apa$ityo# the $ompany tomeet demand

0hat &e &ant to do is*alan$e o"t theprod"$tion rate(&or'#or$e levels( andinventory to ma'ethese #ig"res mat$h "p

16-/


8/22


9/22

ey Strategies %or Meeting &emand

Chase

Level

Sta*le &or'#or$e

16-4


10/22

Aggregate Planning 5 amples7 8nit &emand and .ost &ata

Materials $5/unitHoldin !osts $1/unit per "o#Mar inal !ost o sto!%out $1#25/unit per "o#Hirin and trainin !ost $200/&or%er 'ayo !osts $250/&or%er 'abor (ours re)uired #15 (rs/unit*trai (t ti"e labor !ost $8/(our +e innin in,entory 250 units-rodu!ti,e (ours/&or%er/day 7#25

-aid strai (t (rs/day 8

S"ppose &e have the #ollo&ing "nit

demand and $ost in#ormation:.e"and/"o Jan Feb Mar Apr May Jun

4500 5500 7000 10000 8000 6000

16-19


11/22

Jan Feb Mar Apr May JunDays/mo 22 19 21 21 22 20Hrs/worker/mo 159.5 137.75 152.25 152.25 159.5 145Uni s/worker 10!3.33 91".33 1015 1015 10!3.33 9!!.!7

#/worker #1$40" 1$21! 1$344 1$344 1$40" 1$2"0

-rodu!ti,e (ours/&or%er/day 7#25-aid strai (t (rs/day 8

.e"and/"o Jan Feb Mar Apr MayJun

4500 5500 7000 10000 8000

6000

Given the demand and $ost in#ormation *elo&( &hatare the aggregate ho"rs2&or'er2month( "nits2&or'er( anddollars2&or'er3

7#25 22

7#25 0#15 48#

84# 22 106 #22 8(rs $8 $1408

.ut-and-,ry 5 ample7 &eterminingStraig t 'a:or .osts and "utput

16-11


12/22

. ase Strategy(;iring < Firing to meet demand)

J anDays/mo 22Hrs/worker/mo 159.5Uni s/worker 1$0!3.33#/worker #1$40"

J anDeman% 4$500&e'. in). 250*e re+. 4$250,e+. workers 3.997Hire%Fire% 3-orkore 4

n%in' in)enory 0

Lets ass"me o"r $"rrent &or'#or$e is 4&or'ers5

irst( $al$"late net re)"irements #orprod"$tion( or 7899- 89;7 89 "nits

Then( $al$"late n"m*er o# &or'ersneeded to prod"$e the netre)"irements( or7 892196 5 ; 5


13/22

J an Feb Mar Apr May JunDays/mo 22 19 21 21 22 20Hrs/worker/mo 159.5 137.75 152.25 152.25 159.5 145Uni s/worker 1$0!3 91" 1$015 1$015 1$0!3 9!7#/worker #1$40" 1$21! 1$344 1$344 1$40" 1$2"0

Jan Feb Mar Apr May JunDeman% 4$500 5$500 7$000 10$000 "$000 !$000&e'. in). 250

*e re+. 4$250 5$500 7$000 10$000 "$000 !$000,e+. workers 3.997 5.9"9 !."97 9."52 7.524 !.207Hire% 2 1 3Fire% 3 2 1-orkore 4 ! 7 10 " 7n%in' in)enory 0 0 0 0 0 0

>elo& are the $omplete $al$"lations #or the remainingmonths in the six month planning hori on

16-13


14/22


Deman% 4$500 5$500 7$000 10$000 "$000 !$000&e'. in). 250*e re+. 4$250 5$500 7$000 10$000 "$000 !$000,e+. workers 3.997 5.9"9 !."97 9."52 7.524 !.207Hire% 2 1 3

Fire% 3 2 1-ork ore 4 ! 7 10 " 7n%in' in)enory 0 0 0 0 0 0

Jan Feb Mar Apr May Jun ossMaeria #21$250.00 #27$500.00 #35$000.00 #50$000.00 #40$000.00 #30$000.00 203$750.00abor 5$!27.59 7$2"2.7! 9$2!".97 13$241.3" 10$593.10 7$944."3 53$95".!2Hirin' os 400.00 200.00 !00.00 1$200.00Firin' os 750.00 500.00 250.00 1$500.00

?:69(79.56:

>elo& are the $omplete $al$"lations #or the remaining months inthe six month planning hori on &ith the other $osts in$l"ded

16-1


15/22

'e el $ork%orce Strategy (Surplus and S ortage Allowed)

J anDeman% 4$500&e'. in). 250*e re+. 4$250-orkers !

ro%uion !$3"0n%in' in)enory 2$130urpus 2$1306ora'e

Lets ta'e the same pro*lem as*e#ore *"t this time "se theLevel 0or'#or$e strategy

This time &e &ill see' to "sea &or'#or$e level o# 6 &or'ers

16-1+

16 16


16/22

>an Fe: Mar Apr May >un&emand )?+99 +?+99 /?999 19?999 2?999 6?999eg@ in(@ =+9 =?139 =?1)9 1?=39 -=?629 -1?399et re!@ )?=+9 3?3/9 )?269 2?//9 19?629 /?399$orkers 6 6 6 6 6 6Production 6?329 +?+19 6?949 6?949 6?329 +?2995nding in(entory =?139 =?1)9 1?=39 -=?629 -1?399 -1?+99Surplus =?139 =?1)9 1?=39S ortage =?629 1?399 1?+99

ote? i% we recalculate t is s eet wit / workerswe would a e a surplus

>elo& are the $omplete $al$"lations #or the remainingmonths in the six month planning hori on

16-16

16 1/


17/22

>an Fe: Mar Apr May >un)?+99 +?+99 /?999 19?999 2?999 6?999

=+9 =?139 19 -419 -3?419 -1?6=9)?=+9 3?3/9 )?269 2?//9 19?629 /?399

6 6 6 6 6 66?329 +?+19 6?949 6?949 6?329 +?299=?139 =?1)9 1?=39 -=?629 -1?399 -1?+99=?139 =?1)9 1?=39

=?629 1?399 1?+99

>an Fe: Mar Apr May >unB2?))2 B/?=46 B2?96) B2?96) B2?))2 B/?629 B)2?999@9931?499 =/?++9 39?)+9 39?)+9 31?499 =4?999 121?=+9@99

=?139 =?1)9 1?=39 +?+99@993?3+9 1?6=+ 1?2/+ 6?2+9@99

?:71(699599

Belo" are the complete calculations for theremaining months in the six month planninghori'on "ith the other costs included

/ote( total$osts "nderthis strategyare less thanChase at? 69579.56

'a:or MaterialStorageStockout

16-1/

16 12


18/22

Cuestion owl

Sales and Operations Planninga$tivities are "s"ally $ond"$tedd"ring &hi$h planning time hori on

a5 Long-range

*5 =ntermediate-range$5 Short-ranged5 @eally short-rangee5 /one o# the a*ove

%ns"er( b) Intermediate*range +i)e), - to

./ months0

16-12

16 14


19/22

Cuestion owl

0hi$h o# the #ollo&ing are Prod"$tionPlanning Strategies $an involve trade-o##s among the &or'#or$e si e( &or'ho"rs( inventory( and *a$'logs3

a5 Chase strategy

*5 Sta*le &or'#or$e-varia*le &or' ho"rs$5 Level strategyd5 All o# the a*ovee5 /one o# the a*ove

%ns"er( d) %ll of the abo e

16-14

16 =9


20/22

Cuestion owl

0hi$h o# the #ollo&ing are $onsideredrelevant $ostsB in the AggregateProd"$tion Plan3

a5 Costs asso$iated &ith $hanges in theprod"$tion rate

*5 =nventory holding $osts$5 >a$'ordering $osts

d5 >asi$ prod"$tion $ostse5 All o# the a*ove

%ns"er( e) %ll of the abo e

16-=9

16 =1


21/22

Cuestion owl

0hi$h o# the #ollo&ing AggregatePlanning Te$hni)"es $an *e per#ormed"sing simple spreadsheets3

a5 C"t-and-try*5 Linear programming

$5 Transportation methodd5 All o# the a*ovee5 /one o# the a*ove

%ns"er( a) Cut*and*try +The other t"o in ol e morecomplex computational effort than simple

spreadsheets)0

16-=1

16 ==


22/22

End o# Chapter 16

16-==

Aggregate and Sales Planning

Documents

Transcript of Aggregate and Sales Planning