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aggregate plannning
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Aggregate Planningand S&OP 13
© 2014 Pearson Education, Inc. 13 - 1
, Learning Objectives
When you complete this chapter you
should be able to:
1. Define sales and operations planning
2. Define aggregate planning
3. Identify optional strategies for developing an
aggregate plan
4. Prepare a graphical aggregate plan
5. Solve an aggregate plan via the
transportation method
6. Understand and solve a revenue
management problem
© 2014 Pearson Education, Inc. 13 - 2
, In chapter 4 (Forecasting), we saw that
the demand forecasting can address
long; medium; and short-range
decisions.
Figure 13.1 below illustrates how
managers translate these forecasts into
short; medium; and long plans.
© 2014 Pearson Education, Inc. 13 - 3
, The Planning Process
Long-range plans (over one year)
Figure 13.1 Capacity decisions critical to long range plans
Issues:
Research and Development
New product plans
Capital investments
Facility location/expansion
Top
executives Intermediate-range plans (3 to 18 months)
Issues:
Sales and operations planning
Production planning and budgeting
Operations Setting employment, inventory,
managers with subcontracting levels
sales and Analyzing operating plans
operations Short-range plans (up to 3 months)
planning team Scheduling techniques
Issues:
Job assignments
Operations Ordering
managers, Job scheduling
supervisors, Dispatching
foremen Overtime
Part-time help
Responsibility Planning tasks and time horizons
© 2014 Pearson Education, Inc. 13 - 4
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