P370 Final || Questions and 100% Verified Answers.
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Course
P370
Institution
P370
aggregate production planning correct answers a managerial statement of time-phased production rates, work-force levels, and inventory investment, which takes into account customer requirements and capacity limitations
- helps us attain our goals in the best way possible
- Tactical Planning
- ...
P370 Final || Questions and 100% Verified Answers.
aggregate production planning correct answers a managerial statement of time-phased production
rates, work-force levels, and inventory investment, which takes into account customer
requirements and capacity limitations
- helps us attain our goals in the best way possible
- Tactical Planning
- helps us make decisions around our 3 capital intensive resources (production rates, workforce
levels, and inventory investment)
characteristics of APP correct answers 1. Aggregate: to combine
- classes of products
- labor or other inputs
- geographic location of production
- often fictitious (abstract)
2. Time Horizon: MEDIUM TERM
- APP is the plan with the longest time horizon
3. Time Buckets: divisions of horizons
4. The actual length of the horizon and the size of the time buckets it is divided into will vary
depending on the NATURE OF YOUR BUSINESS
- industry with rapid new product development/high variability will have SHORT HORIZON
with SHORT TIME BUCKETS
- industry with long lead times and stable products will have LONGER HORIZONS and/or
LARGER TIME BUCKETS
- typically one year with one month buckets
3. Executed on Rolling Horizon basis along with all other levels of plans
- working into the future; means that we do not wait for the entire plan to have been executed to
develop a new one
Lower Levels of Planning (after APP) correct answers Gets more specific as we go down:
1. Master Production Scheduling (MPS)—after APP
- 1st level of disaggregation of the aggregate plan
- begin to "break down" the "products" into more real end product items
- horizon and buckets are NO LARGER than APP (OFTEN SHORTER)
- typically implemented on rolling horizon
- typically formulated and evaluated at a lower organizational level than the APP
2. Material Requirements Planning (MRP)—after MPS
- Extreme detail, down to each nut and bolt
- no "fictitious, aggregated" products are used
, 3. Shop Floor Scheduling—after MRP
- detailed, actual production schedule
Three Pure "General" Aggregate Plans (uses labor, production rate, inventory) correct answers 1.
Chase
- Inventory constant
- production and labor fluctuate to perfectly match demand and thus maintain no inventory
- OPPOSITE OF LEVEL
- aka amount produced in any given period is equal to the minimum amount required to satisfy
demand for that period (EI in any given period is 0)
- hiring and firing workers
- use chase: when highly seasonal, when holding costs are high, unskilled labor, short product
life cycle, perishable goods, services
2. Level
- Inventory fluctuates
- Constant workforce/production level, allowing changes in inventory to buffer you from the
changes in demand level
3. Stable Workforce -- Variable Hours
- size of workforce is constant, but number of hours worked fluctuates
- allows variable working hours to buffer against variation
- allows production to vary from period to period, with the intent of keeping inventory as low as
possible (aka EI is 0); however, don't hire and fire workers, just alter the number of hours they
need to work
Types of Inventory correct answers 1. Raw material: inventory which has not yet undergone any
transformation by the company
- can be highly processed parts, just so long as all processing was performed outside of the
operational unit in question
- procurement agent: purchases raw materials; is the stakeholder
2. Work-in-process (WIP): inventory which has already undergone some transformation by the
operational unit, but is not yet completed
- Scheduling people run this and are the stakeholders
3. Finished good: inventory which has undergone all transformations to be performed at the
operational unit, and which is therefore ready to be passed onto the customer
- marketing is the stakeholder
Reasons for Holding Inventory correct answers 1. Safety stock: inventory which is being held to
buffer against some form of uncertainty
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