Rough-Cut Capacity Planning in SCM (Review) EIN 5346 Logistics Engineering Fall, 2016
Rough-Cut Capacity Planning in SCM Theories & Concepts
APICS-Standard Planning Framework APICS - American Production and Inventory Control Society
Rough-cut Capacity Planning Main goal in rough-cut capacity planning is to identify where overloading or under-loading of production capacity occurs and revise the MPS as required. Overloading means that too much production of products has been planned in the facility and insufficient capacity exists to produce planned quantities of products required in MPS. Under-loading means that not enough production of products has been planned to fully load the facility.
Rough-Cut Capacity Planning in APO-SNP
Order Life Cycle for Make-to-Stock DEMANDS Original Revised Forecast 200 includes the sales order 100. SUPPLIES
Order Life Cycle for Make-to-Order
Forecast Consumption Mode and Horizon (Backword consumption of 4 days and a forward consumption of 3 days)
Forecast Consumption Mode and Horizon (Backword consumption of 4 days and a forward consumption of 3 days)
Forecast Consumption Mode and Horizon Order 70 (Backword consumption of 4 days and a forward consumption of 3 days)
Forecast Consumption Mode and Horizon Order 70 (Backword consumption of 4 days and a forward consumption of 3 days)
Transactional Data for Transferring Starting from a demand plan, SNP checks the resource capacities and delivers a medium/long-term plan for the estimated sales volumes. The plan includes 1) quantities to be transported between locations (e.g., DC-customer, or plant-DC) and 2) quantities to be produced (and procured), taking available capacity into consideration. SNP creates planned orders, purchase requisitions, and stock transfers that can be transferred directly to the connected OLTP systems. OLTP – Online transaction processing
Capacity Levelling Capacity leveling supports the following resource categories: Production resources in APO (Work centers in ERP) Transportation resources
Capacity Levelling Profile The main settings in the capacity leveling profile are scheduling direction, prioritization, and method. Scheduling Direction controls whether Forward, Backward or Combined scheduling is used. Prioritization for the heuristic run defines how leveling determines the sequence of orders. The two possible choices for prioritization (to be sorted by ascending or descending order) are by order size or by product priority. Method choices are Heuristic, Optimizer or Badi (Business Aided-in).
Capacity Levelling Profile
Heuristics-based Capacity Levelling Heuristic-based capacity leveling compares, period by period, If resource is found overloaded, the system first selects all the activities or orders that cause the overload in this period. It sorts these orders according to the priority one by one until the required maximum resource utilization is reached.
Time-based Capacity Levelling
Capacity Levelling
SNP Heuristic as Location, Network, and Multi-Level Heuristic
Operation Research (OR) Operation research refers to the application of quantitative methods and techniques to business problems in order to best utilize a company’s resources. OR is used by many leading companies to optimize their limited resources in order to maximize their profits or minimize their costs. Linear programming (LP) is one of the most important tools of operation research.
Linear Programming (LP)
Linear Programming (LP) Five common types of LP problems: Product mixed Ingredient mix Transportation Production plan Assignment
Five common types of LP problems
Five common types of LP problems
Steps in Formulating LP Problems Define the objective Define the decision variables Write the mathematical function for the objective (objective function) Write a one- or two-word description of each constraints Write the right-hand side (RHS) of each constraint, including the unit of measure. Write<=, =, or >= for each equation Write all the decision variables on the left-hand side of each constraints Write the coefficient for each decision variable in each constraint.
Formulating LP
Formulating LP
Formulation LP
Formulation of Problem
Objective and Constraints
Steps in Graphical Solution Method
Graphical Solution
Graphical Solution
Graphical Solution
Graphical Solution