1. William J. Stevenson Operations Management 8 th edition

2. CHAPTER 12 Aggregate Planning McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

5. Planning Sequence Figure 12.1 Business Plan Establishes operations and capacity strategies Aggregate plan Establishes operations capacity Master schedule Establishes schedules for specific products Corporate strategies and policies Economic, competitive, and political conditions Aggregate demand forecasts

16. Cumulative Graph Figure 12.3 1 2 3 4 5 6 7 8 9 10 Cumulative production Cumulative demand Cumulative output/demand

17. Average Inventory Average inventory Beginning Inventory + Ending Inventory 2 =

19. Summary of Planning Techniques Table 12.7

21. Aggregate Plan to Master Schedule Figure 12.4 Aggregate Planning Disaggregation Master Schedule

25. Master Scheduling Process Figure 12.6 Master Scheduling Beginning inventory Forecast Customer orders Inputs Outputs Projected inventory Master production schedule Uncommitted inventory

26. Projected On-hand Inventory Projected on-hand inventory Inventory from previous week Current week’s requirements - =

27. Projected On-hand Inventory Figure 12.8 Beginning Inventory Customer orders are larger than forecast in week 1 Forecast is larger than Customer orders in week 2 Forecast is larger than Customer orders in week 3

28. Time Fences in MPS Period “ frozen” (firm or fixed) “ slushy” somewhat firm “ liquid” (open) Figure 12.12 9 8 7 6 5 4 3 2 1

29. Solved Problems: Problem 1