Difference between aggregate planning and master production schedule
Aggregate planning involves developing, analyzing and maintaining the operational schedule of an organization. It organizes areas of business that include targeted sales forecasts, production levels, inventory levels and customer backlogs. When aggregate planning is carried out effectively, the effects of short-sighted, daily scheduling are minimized. Capacity and demand are balanced in a way that minimizes costs where aggregate resources may include the total number of workers, hours of equipment and machine time, or tons of raw materials. Show
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Differentiation
Aggregate Planning and Master SchedulingAggregate Planning and Master SchedulingChapter 11 Teaching NotesIn the earlier chapters, we have looked at certain problems that involve long range planning such as facility location, layout and major equipment purchase decisions. Aggregate planning
involves medium range planning. The planning horizon for medium range plans varies from a couple of months to 18 months. A major component of aggregate planning is to plan aggregate production and inventory levels to achieve a desired level of customer service. In preparing the aggregate plan, a major consideration is to check the desired production plan against the estimated capacity. On the other hand, in determining the estimated capacity, we must take into account the expected demand and the
resulting medium range production plan. Answers to Discussion and Review Questions
9. a. Spreadsheets are intuitively appealing and easy to understand, but solutions are not necessarily optimal.
11. Aggregate planning helps managers establish plans for inputs and outputs and employment level and budgets for the intermediate term. The plans involve collaboration among finance, operations, marketing, sales, and human resources personnel. It helps to get everyone “on the same page.” And, it establishes a basic framework for the intermediate term, which is particularly important when changes are called for because changes typically take time to implement. Taking Stock
Critical Thinking Exercise
1. Aggregate Planning is the planning of the overall, general use of resources based on expected demand. It involves determining the levels of production or service for one quarter to 1.5 years into the future. Based on the forecasted demand, capacity levels, current inventory level, size of the workforce, production and service requirements are aggregated into one “product” or “service.”
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What is master schedule in aggregate planning?MASTER SCHEDULING • The result of disaggregating an aggregate plan. • It shows the quantity and timing of specific end items for a scheduled time (6 to 8 weeks ahead). • It shows planned output for individual products along with time of production.
What is the difference between production planning and production scheduling?The main difference is that production planning works with orders planned by the MRP and fixed orders planned by the MPS outside the cumulative lead time window, while scheduling works by converting the orders planned by the MRP into fixed planned orders with the MPS and, finally, in work orders once they enter the ...
What is scheduling and does it differ from aggregate planning?The main difference between planning and scheduling is that planning determines what and how much needs to be done while scheduling defines who and when the operations will be performed. Although they are different processes, they come together within operation and production scheduling.
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