Rev. 03/09/05SJSU Bus David Bentley1 Chapter 12 – Aggregate Planning Planning levels (long, intermediate and short ranges and real time control); Planning & Control Model; strategies for uneven demand

Rev. 09/19/05SJSU Bus David Bentley2 Planning Levels - 1 Long Range Horizon: 3-5 years Intervals (“buckets”): Quarterly and annual Aggregation: Company, Division, Product Group or Product Line Consists of: Sales Plan, Production Plan, Long Range Resource Plan (LRRP) Supports: Business Plan

Rev. 09/19/05SJSU Bus David Bentley3 Planning Levels - 2 Intermediate Range Horizon: months Intervals (“buckets”): Monthly and quarterly Aggregation: Product Consists of: Demand Forecast, Master Production Schedule (MPS), Rough Cut Capacity Plan (RCCP) Supports: Sales, Production, LRR Plans

Rev. 09/19/05SJSU Bus David Bentley4 Planning Levels - 3 Short Range Horizon: 12 months Intervals (buckets) : Days and weeks Aggregation: Item (Part) Consists of: Material Requirements Plan (MRP), Capacity Requirements Plan (CRP) Supports: Master Production Schedule

Rev. 09/19/05SJSU Bus David Bentley5 Planning Levels - 4 Real Time Horizon: Now Intervals (“buckets”): Minutes and days Aggregation: P.O. line item, Job operation Consists of: Purchasing system, Production Activity Control (PAC) system Really a control level

Rev. 09/06/01SJSU Bus David Bentley6 Strategies for Uneven Demand Level Capacity Steady rate of output Minimal or no layoffs or hiring Inventories and/or backlogs Chase Demand “Hire and fire” Varying output rates Minimal inventory and managed backlog