Topic 11 - Aggregate Production Planning and Master Scheduling

Question 1

Long-Term plans

Answer 1

Multiyear
*Facility location
*Product mix
*Product design
*Supply chain design

Question 2

Intermediate plans

Answer 2

6-18 months with monthly or quarterly time increments
*Aggregate planning,
*Inventory Management
*Workforce

Question 3

Short-term plans

Answer 3

6 months or less with weekly or daily increments
*Master production scheduling (Disaggregation)
*Dependent demand
*Detailed production planning

Question 4

What are some techniques to adjust capacity?

Answer 4

*Hire Temp workers
*Overtime/ idle time
*Part-Time workers
*Stockpile inventories
*Sub-contracting

Question 5

What are some ways to manage demand?

Answer 5

*Pricing
*Promotion
*Early Orders
*Back orders
*Exporting
*Complementary products

Question 6

What are the Basic Aggregate Planning strategies?

Answer 6

1) Chase demand strategy
2) Level output/work force strategy
3) A combination of both

Question 7

Chase demand strategy

Answer 7

Matching capacity to demand
Planning output set at forecasted demand
Meeting variations in demand with overtime, subcontracting & Part-time/temporary workers
*Conditions: Expensive or short-life inventory, capacity is expensive

Question 8

Level output/workforce strategy

Answer 8

Maintain steady rate of output
Smooth production, but lots of inventory each month- Inventory cost
Meeting variations in demand with inventories
Conditions: High hiring/firing cost, skilled workforce requirement, intensive training needs