Enviar búsqueda
Cargar
Heizer om10 ch13
•
10 recomendaciones
•
1,919 vistas
R
ryaekle
Seguir
Tecnología
Empresariales
Denunciar
Compartir
Denunciar
Compartir
1 de 69
Recomendados
Heizer 12
Heizer 12
Rizwan Khurram
Heizer om10 ch08
Heizer om10 ch08
ryaekle
Heizer 02
Heizer 02
Rizwan Khurram
Heizer 01
Heizer 01
Rizwan Khurram
Heizer 07
Heizer 07
Rizwan Khurram
Heizer 11
Heizer 11
Rizwan Khurram
11 capacity planning and control_Operations Management
11 capacity planning and control_Operations Management
Brent Weeks
Heizer 13
Heizer 13
Rizwan Khurram
Recomendados
Heizer 12
Heizer 12
Rizwan Khurram
Heizer om10 ch08
Heizer om10 ch08
ryaekle
Heizer 02
Heizer 02
Rizwan Khurram
Heizer 01
Heizer 01
Rizwan Khurram
Heizer 07
Heizer 07
Rizwan Khurram
Heizer 11
Heizer 11
Rizwan Khurram
11 capacity planning and control_Operations Management
11 capacity planning and control_Operations Management
Brent Weeks
Heizer 13
Heizer 13
Rizwan Khurram
Heizer 14
Heizer 14
Rizwan Khurram
Heizer mod b
Heizer mod b
Rizwan Khurram
Heizer 03
Heizer 03
Rizwan Khurram
Heizer 16
Heizer 16
Rizwan Khurram
Heizer 05
Heizer 05
Rizwan Khurram
Heizer 15
Heizer 15
Rizwan Khurram
Heizer 04
Heizer 04
Rizwan Khurram
Chapter 8 Location Strategy.ppt
Chapter 8 Location Strategy.ppt
ssuser7d3776
Heizer 17
Heizer 17
Rizwan Khurram
Heizer 14
Heizer 14
ajithsrc
Heizer 10
Heizer 10
Rizwan Khurram
Heizer om10 ch11
Heizer om10 ch11
ryaekle
Heizer 09
Heizer 09
Rizwan Khurram
Heizer Chapter ch02
Heizer Chapter ch02
Yesica Adicondro
Chapter 9 layout strategies
Chapter 9 layout strategies
RAFIZA MOHD RADZI
Heizer om10 ch07
Heizer om10 ch07
ryaekle
Introduction to operations and logistics management
Introduction to operations and logistics management
Teguh Siswanto
Chapter 12
Chapter 12
Abdulrahman Almazrouei
Chap12 mc questions&answers
Chap12 mc questions&answers
Narendra Chatterjee
Supply Chain Management English
Supply Chain Management English
Yesica Adicondro
13 - © 2014 Pearson Education, Inc.Aggregate Plan.docx
13 - © 2014 Pearson Education, Inc.Aggregate Plan.docx
aulasnilda
Sales Operations
Sales Operations
Olumide Akinlabi
Más contenido relacionado
La actualidad más candente
Heizer 14
Heizer 14
Rizwan Khurram
Heizer mod b
Heizer mod b
Rizwan Khurram
Heizer 03
Heizer 03
Rizwan Khurram
Heizer 16
Heizer 16
Rizwan Khurram
Heizer 05
Heizer 05
Rizwan Khurram
Heizer 15
Heizer 15
Rizwan Khurram
Heizer 04
Heizer 04
Rizwan Khurram
Chapter 8 Location Strategy.ppt
Chapter 8 Location Strategy.ppt
ssuser7d3776
Heizer 17
Heizer 17
Rizwan Khurram
Heizer 14
Heizer 14
ajithsrc
Heizer 10
Heizer 10
Rizwan Khurram
Heizer om10 ch11
Heizer om10 ch11
ryaekle
Heizer 09
Heizer 09
Rizwan Khurram
Heizer Chapter ch02
Heizer Chapter ch02
Yesica Adicondro
Chapter 9 layout strategies
Chapter 9 layout strategies
RAFIZA MOHD RADZI
Heizer om10 ch07
Heizer om10 ch07
ryaekle
Introduction to operations and logistics management
Introduction to operations and logistics management
Teguh Siswanto
Chapter 12
Chapter 12
Abdulrahman Almazrouei
Chap12 mc questions&answers
Chap12 mc questions&answers
Narendra Chatterjee
Supply Chain Management English
Supply Chain Management English
Yesica Adicondro
La actualidad más candente
(20)
Heizer 14
Heizer 14
Heizer mod b
Heizer mod b
Heizer 03
Heizer 03
Heizer 16
Heizer 16
Heizer 05
Heizer 05
Heizer 15
Heizer 15
Heizer 04
Heizer 04
Chapter 8 Location Strategy.ppt
Chapter 8 Location Strategy.ppt
Heizer 17
Heizer 17
Heizer 14
Heizer 14
Heizer 10
Heizer 10
Heizer om10 ch11
Heizer om10 ch11
Heizer 09
Heizer 09
Heizer Chapter ch02
Heizer Chapter ch02
Chapter 9 layout strategies
Chapter 9 layout strategies
Heizer om10 ch07
Heizer om10 ch07
Introduction to operations and logistics management
Introduction to operations and logistics management
Chapter 12
Chapter 12
Chap12 mc questions&answers
Chap12 mc questions&answers
Supply Chain Management English
Supply Chain Management English
Similar a Heizer om10 ch13
13 - © 2014 Pearson Education, Inc.Aggregate Plan.docx
13 - © 2014 Pearson Education, Inc.Aggregate Plan.docx
aulasnilda
Sales Operations
Sales Operations
Olumide Akinlabi
CH13.PPT
CH13.PPT
jafyu
Balance Scorecard.ppt
Balance Scorecard.ppt
AndiTriHaryono1
Mba ii pmom_unit-2.4 aggregate planning a
Mba ii pmom_unit-2.4 aggregate planning a
Rai University
Heizer om10 ch14
Heizer om10 ch14
ryaekle
Supply Chain Management chap 9
Supply Chain Management chap 9
Umair Arain
Session 4_OM
Session 4_OM
thangv
Chapter 4_OM
Chapter 4_OM
guest537689
Forecasting And Aggregate Planning
Forecasting And Aggregate Planning
Joanmaines
Heizer om10 ch16
Heizer om10 ch16
ryaekle
SCM-4.pptx
SCM-4.pptx
EndrisAli5
SCM-4.pptx
SCM-4.pptx
endris ali
Coordination in SCM.pptx
Coordination in SCM.pptx
sheetalip
6 ch 8 Aggregate Planning.ppt
6 ch 8 Aggregate Planning.ppt
DemekeChimdessa1
360_ch04
360_ch04
ryaekle
PPC_2_Forecasting_English.pdf
PPC_2_Forecasting_English.pdf
syedalirazakazmi16
Supply Chain Management chap 10
Supply Chain Management chap 10
Umair Arain
David sm13 ppt_05
David sm13 ppt_05
Rizwanah Parwin
david_sm13_ppt_08.ppt
david_sm13_ppt_08.ppt
ShahidRandhwa
Similar a Heizer om10 ch13
(20)
13 - © 2014 Pearson Education, Inc.Aggregate Plan.docx
13 - © 2014 Pearson Education, Inc.Aggregate Plan.docx
Sales Operations
Sales Operations
CH13.PPT
CH13.PPT
Balance Scorecard.ppt
Balance Scorecard.ppt
Mba ii pmom_unit-2.4 aggregate planning a
Mba ii pmom_unit-2.4 aggregate planning a
Heizer om10 ch14
Heizer om10 ch14
Supply Chain Management chap 9
Supply Chain Management chap 9
Session 4_OM
Session 4_OM
Chapter 4_OM
Chapter 4_OM
Forecasting And Aggregate Planning
Forecasting And Aggregate Planning
Heizer om10 ch16
Heizer om10 ch16
SCM-4.pptx
SCM-4.pptx
SCM-4.pptx
SCM-4.pptx
Coordination in SCM.pptx
Coordination in SCM.pptx
6 ch 8 Aggregate Planning.ppt
6 ch 8 Aggregate Planning.ppt
360_ch04
360_ch04
PPC_2_Forecasting_English.pdf
PPC_2_Forecasting_English.pdf
Supply Chain Management chap 10
Supply Chain Management chap 10
David sm13 ppt_05
David sm13 ppt_05
david_sm13_ppt_08.ppt
david_sm13_ppt_08.ppt
Más de ryaekle
Bad410 business law
Bad410 business law
ryaekle
Meet your professor
Meet your professor
ryaekle
Human resources assignment
Human resources assignment
ryaekle
Bad360 operations management online
Bad360 operations management online
ryaekle
Heizer om10 mod_f
Heizer om10 mod_f
ryaekle
Heizer om10 mod_e
Heizer om10 mod_e
ryaekle
Heizer om10 mod_d
Heizer om10 mod_d
ryaekle
Heizer om10 mod_c
Heizer om10 mod_c
ryaekle
Heizer om10 mod_b
Heizer om10 mod_b
ryaekle
Heizer om10 mod_a
Heizer om10 mod_a
ryaekle
Heizer om10 ch17
Heizer om10 ch17
ryaekle
Heizer om10 ch15
Heizer om10 ch15
ryaekle
Heizer om10 ch12
Heizer om10 ch12
ryaekle
Heizer om10 ch10
Heizer om10 ch10
ryaekle
Heizer om10 ch09
Heizer om10 ch09
ryaekle
Heizer om10 ch06
Heizer om10 ch06
ryaekle
Heizer om10 ch05
Heizer om10 ch05
ryaekle
p305_pp12
p305_pp12
ryaekle
p305_pp11
p305_pp11
ryaekle
p305_pp10
p305_pp10
ryaekle
Más de ryaekle
(20)
Bad410 business law
Bad410 business law
Meet your professor
Meet your professor
Human resources assignment
Human resources assignment
Bad360 operations management online
Bad360 operations management online
Heizer om10 mod_f
Heizer om10 mod_f
Heizer om10 mod_e
Heizer om10 mod_e
Heizer om10 mod_d
Heizer om10 mod_d
Heizer om10 mod_c
Heizer om10 mod_c
Heizer om10 mod_b
Heizer om10 mod_b
Heizer om10 mod_a
Heizer om10 mod_a
Heizer om10 ch17
Heizer om10 ch17
Heizer om10 ch15
Heizer om10 ch15
Heizer om10 ch12
Heizer om10 ch12
Heizer om10 ch10
Heizer om10 ch10
Heizer om10 ch09
Heizer om10 ch09
Heizer om10 ch06
Heizer om10 ch06
Heizer om10 ch05
Heizer om10 ch05
p305_pp12
p305_pp12
p305_pp11
p305_pp11
p305_pp10
p305_pp10
Último
Passkey Providers and Enabling Portability: FIDO Paris Seminar.pptx
Passkey Providers and Enabling Portability: FIDO Paris Seminar.pptx
LoriGlavin3
Unraveling Multimodality with Large Language Models.pdf
Unraveling Multimodality with Large Language Models.pdf
Alex Barbosa Coqueiro
Merck Moving Beyond Passwords: FIDO Paris Seminar.pptx
Merck Moving Beyond Passwords: FIDO Paris Seminar.pptx
LoriGlavin3
The Role of FIDO in a Cyber Secure Netherlands: FIDO Paris Seminar.pptx
The Role of FIDO in a Cyber Secure Netherlands: FIDO Paris Seminar.pptx
LoriGlavin3
Moving Beyond Passwords: FIDO Paris Seminar.pdf
Moving Beyond Passwords: FIDO Paris Seminar.pdf
LoriGlavin3
New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
BookNet Canada
Ensuring Technical Readiness For Copilot in Microsoft 365
Ensuring Technical Readiness For Copilot in Microsoft 365
2toLead Limited
Advanced Computer Architecture – An Introduction
Advanced Computer Architecture – An Introduction
Dilum Bandara
Transcript: New from BookNet Canada for 2024: Loan Stars - Tech Forum 2024
Transcript: New from BookNet Canada for 2024: Loan Stars - Tech Forum 2024
BookNet Canada
From Family Reminiscence to Scholarly Archive .
From Family Reminiscence to Scholarly Archive .
Alan Dix
Connect Wave/ connectwave Pitch Deck Presentation
Connect Wave/ connectwave Pitch Deck Presentation
Slibray Presentation
SIP trunking in Janus @ Kamailio World 2024
SIP trunking in Janus @ Kamailio World 2024
Lorenzo Miniero
Gen AI in Business - Global Trends Report 2024.pdf
Gen AI in Business - Global Trends Report 2024.pdf
Addepto
The State of Passkeys with FIDO Alliance.pptx
The State of Passkeys with FIDO Alliance.pptx
LoriGlavin3
DMCC Future of Trade Web3 - Special Edition
DMCC Future of Trade Web3 - Special Edition
Dubai Multi Commodity Centre
"Subclassing and Composition – A Pythonic Tour of Trade-Offs", Hynek Schlawack
"Subclassing and Composition – A Pythonic Tour of Trade-Offs", Hynek Schlawack
Fwdays
What's New in Teams Calling, Meetings and Devices March 2024
What's New in Teams Calling, Meetings and Devices March 2024
Stephanie Beckett
unit 4 immunoblotting technique complete.pptx
unit 4 immunoblotting technique complete.pptx
BkGupta21
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptx
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptx
LoriGlavin3
Generative AI for Technical Writer or Information Developers
Generative AI for Technical Writer or Information Developers
Raghuram Pandurangan
Último
(20)
Passkey Providers and Enabling Portability: FIDO Paris Seminar.pptx
Passkey Providers and Enabling Portability: FIDO Paris Seminar.pptx
Unraveling Multimodality with Large Language Models.pdf
Unraveling Multimodality with Large Language Models.pdf
Merck Moving Beyond Passwords: FIDO Paris Seminar.pptx
Merck Moving Beyond Passwords: FIDO Paris Seminar.pptx
The Role of FIDO in a Cyber Secure Netherlands: FIDO Paris Seminar.pptx
The Role of FIDO in a Cyber Secure Netherlands: FIDO Paris Seminar.pptx
Moving Beyond Passwords: FIDO Paris Seminar.pdf
Moving Beyond Passwords: FIDO Paris Seminar.pdf
New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
Ensuring Technical Readiness For Copilot in Microsoft 365
Ensuring Technical Readiness For Copilot in Microsoft 365
Advanced Computer Architecture – An Introduction
Advanced Computer Architecture – An Introduction
Transcript: New from BookNet Canada for 2024: Loan Stars - Tech Forum 2024
Transcript: New from BookNet Canada for 2024: Loan Stars - Tech Forum 2024
From Family Reminiscence to Scholarly Archive .
From Family Reminiscence to Scholarly Archive .
Connect Wave/ connectwave Pitch Deck Presentation
Connect Wave/ connectwave Pitch Deck Presentation
SIP trunking in Janus @ Kamailio World 2024
SIP trunking in Janus @ Kamailio World 2024
Gen AI in Business - Global Trends Report 2024.pdf
Gen AI in Business - Global Trends Report 2024.pdf
The State of Passkeys with FIDO Alliance.pptx
The State of Passkeys with FIDO Alliance.pptx
DMCC Future of Trade Web3 - Special Edition
DMCC Future of Trade Web3 - Special Edition
"Subclassing and Composition – A Pythonic Tour of Trade-Offs", Hynek Schlawack
"Subclassing and Composition – A Pythonic Tour of Trade-Offs", Hynek Schlawack
What's New in Teams Calling, Meetings and Devices March 2024
What's New in Teams Calling, Meetings and Devices March 2024
unit 4 immunoblotting technique complete.pptx
unit 4 immunoblotting technique complete.pptx
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptx
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptx
Generative AI for Technical Writer or Information Developers
Generative AI for Technical Writer or Information Developers
Heizer om10 ch13
1.
13 - 1©
2011 Pearson Education, Inc. publishing as Prentice Hall 13 Aggregate Planning PowerPoint presentation to accompany Heizer and Render Operations Management, 10e Principles of Operations Management, 8e PowerPoint slides by Jeff Heyl
2.
13 - 2©
2011 Pearson Education, Inc. publishing as Prentice Hall Outline Global Company Profile: Frito-Lay The Planning Process Planning Horizons The Nature of Aggregate Planning Aggregate Planning Strategies Capacity Options Demand Options Mixing Options to Develop a Plan
3.
13 - 3©
2011 Pearson Education, Inc. publishing as Prentice Hall Outline – Continued Methods for Aggregate Planning Graphical Methods Mathematical Approaches Comparison of Aggregate Planning Methods
4.
13 - 4©
2011 Pearson Education, Inc. publishing as Prentice Hall Outline – Continued Aggregate Planning in Services Restaurants Hospitals National Chains of Small Service Firms Miscellaneous Services Airline Industry Yield Management
5.
13 - 5©
2011 Pearson Education, Inc. publishing as Prentice Hall Learning Objectives When you complete this chapter you should be able to: 1. Define aggregate planning 2. Identify optional strategies for developing an aggregate plan 3. Prepare a graphical aggregate plan
6.
13 - 6©
2011 Pearson Education, Inc. publishing as Prentice Hall Learning Objectives When you complete this chapter you should be able to: 4. Solve an aggregate plan via the transportation method of linear programming 5. Understand and solve a yield management problem
7.
13 - 7©
2011 Pearson Education, Inc. publishing as Prentice Hall Frito-Lay More than three dozen brands, 15 brands sell more than $100 million annually, 7 sell over $1 billion Planning processes covers 3 to 18 months Unique processes and specially designed equipment High fixed costs require high volumes and high utilization
8.
13 - 8©
2011 Pearson Education, Inc. publishing as Prentice Hall Frito-Lay Demand profile based on historical sales, forecasts, innovations, promotion, local demand data Match total demand to capacity, expansion plans, and costs Quarterly aggregate plan goes to 38 plants in 18 regions Each plant develops 4-week plan for product lines and production runs
9.
13 - 9©
2011 Pearson Education, Inc. publishing as Prentice Hall Aggregate Planning The objective of aggregate planning is to meet forecasted demand while minimizing cost over the planning period
10.
13 - 10©
2011 Pearson Education, Inc. publishing as Prentice Hall The Planning Process Objective is to minimize cost over the planning period by adjusting Production rates Labor levels Inventory levels Overtime work Subcontracting rates Other controllable variables Determine the quantity and timing of production for the intermediate future
11.
13 - 11©
2011 Pearson Education, Inc. publishing as Prentice Hall Aggregate Planning A logical overall unit for measuring sales and output A forecast of demand for an intermediate planning period in these aggregate terms A method for determining costs A model that combines forecasts and costs so that scheduling decisions can be made for the planning period Required for aggregate planning
12.
13 - 12©
2011 Pearson Education, Inc. publishing as Prentice Hall Planning Horizons Figure 13.1 Long-range plans (over one year) Research and Development New product plans Capital investments Facility location/expansion Intermediate-range plans (3 to 18 months) Sales planning Production planning and budgeting Setting employment, inventory, subcontracting levels Analyzing operating plans Short-range plans (up to 3 months) Job assignments Ordering Job scheduling Dispatching Overtime Part-time help Top executives Operations managers Operations managers, supervisors, foremen Responsibility Planning tasks and horizon
13.
13 - 13©
2011 Pearson Education, Inc. publishing as Prentice Hall Aggregate Planning Quarter 1 Jan Feb Mar 150,000 120,000 110,000 Quarter 2 Apr May Jun 100,000 130,000 150,000 Quarter 3 Jul Aug Sep 180,000 150,000 140,000
14.
13 - 14©
2011 Pearson Education, Inc. publishing as Prentice Hall Aggregate Planning Figure 13.2
15.
13 - 15©
2011 Pearson Education, Inc. publishing as Prentice Hall Aggregate Planning Combines appropriate resources into general terms Part of a larger production planning system Disaggregation breaks the plan down into greater detail Disaggregation results in a master production schedule
16.
13 - 16©
2011 Pearson Education, Inc. publishing as Prentice Hall Aggregate Planning Strategies 1. Use inventories to absorb changes in demand 2. Accommodate changes by varying workforce size 3. Use part-timers, overtime, or idle time to absorb changes 4. Use subcontractors and maintain a stable workforce 5. Change prices or other factors to influence demand
17.
13 - 17©
2011 Pearson Education, Inc. publishing as Prentice Hall Capacity Options Changing inventory levels Increase inventory in low demand periods to meet high demand in the future Increases costs associated with storage, insurance, handling, obsolescence, and capital investment Shortages may mean lost sales due to long lead times and poor customer service
18.
13 - 18©
2011 Pearson Education, Inc. publishing as Prentice Hall Capacity Options Varying workforce size by hiring or layoffs Match production rate to demand Training and separation costs for hiring and laying off workers New workers may have lower productivity Laying off workers may lower morale and productivity
19.
13 - 19©
2011 Pearson Education, Inc. publishing as Prentice Hall Capacity Options Varying production rate through overtime or idle time Allows constant workforce May be difficult to meet large increases in demand Overtime can be costly and may drive down productivity Absorbing idle time may be difficult
20.
13 - 20©
2011 Pearson Education, Inc. publishing as Prentice Hall Capacity Options Subcontracting Temporary measure during periods of peak demand May be costly Assuring quality and timely delivery may be difficult Exposes your customers to a possible competitor
21.
13 - 21©
2011 Pearson Education, Inc. publishing as Prentice Hall Capacity Options Using part-time workers Useful for filling unskilled or low skilled positions, especially in services
22.
13 - 22©
2011 Pearson Education, Inc. publishing as Prentice Hall Demand Options Influencing demand Use advertising or promotion to increase demand in low periods Attempt to shift demand to slow periods May not be sufficient to balance demand and capacity
23.
13 - 23©
2011 Pearson Education, Inc. publishing as Prentice Hall Demand Options Back ordering during high- demand periods Requires customers to wait for an order without loss of goodwill or the order Most effective when there are few if any substitutes for the product or service Often results in lost sales
24.
13 - 24©
2011 Pearson Education, Inc. publishing as Prentice Hall Demand Options Counterseasonal product and service mixing Develop a product mix of counterseasonal items May lead to products or services outside the company’s areas of expertise
25.
13 - 25©
2011 Pearson Education, Inc. publishing as Prentice Hall Aggregate Planning Options Table 13.1 Option Advantages Disadvantages Some Comments Changing inventory levels Changes in human resources are gradual or none; no abrupt production changes. Inventory holding cost may increase. Shortages may result in lost sales. Applies mainly to production, not service, operations. Varying workforce size by hiring or layoffs Avoids the costs of other alternatives. Hiring, layoff, and training costs may be significant. Used where size of labor pool is large.
26.
13 - 26©
2011 Pearson Education, Inc. publishing as Prentice Hall Aggregate Planning Options Table 13.1 Option Advantages Disadvantages Some Comments Varying production rates through overtime or idle time Matches seasonal fluctuations without hiring/ training costs. Overtime premiums; tired workers; may not meet demand. Allows flexibility within the aggregate plan. Sub- contracting Permits flexibility and smoothing of the firm’s output. Loss of quality control; reduced profits; loss of future business. Applies mainly in production settings.
27.
13 - 27©
2011 Pearson Education, Inc. publishing as Prentice Hall Aggregate Planning Options Table 13.1 Option Advantages Disadvantages Some Comments Using part- time workers Is less costly and more flexible than full-time workers. High turnover/ training costs; quality suffers; scheduling difficult. Good for unskilled jobs in areas with large temporary labor pools. Influencing demand Tries to use excess capacity. Discounts draw new customers. Uncertainty in demand. Hard to match demand to supply exactly. Creates marketing ideas. Overbooking used in some businesses.
28.
13 - 28©
2011 Pearson Education, Inc. publishing as Prentice Hall Aggregate Planning Options Table 13.1 Option Advantages Disadvantages Some Comments Back ordering during high- demand periods May avoid overtime. Keeps capacity constant. Customer must be willing to wait, but goodwill is lost. Many companies back order. Counter- seasonal product and service mixing Fully utilizes resources; allows stable workforce. May require skills or equipment outside the firm’s areas of expertise. Risky finding products or services with opposite demand patterns.
29.
13 - 29©
2011 Pearson Education, Inc. publishing as Prentice Hall Methods for Aggregate Planning A mixed strategy may be the best way to achieve minimum costs There are many possible mixed strategies Finding the optimal plan is not always possible
30.
13 - 30©
2011 Pearson Education, Inc. publishing as Prentice Hall Mixing Options to Develop a Plan Chase strategy Match output rates to demand forecast for each period Vary workforce levels or vary production rate Favored by many service organizations
31.
13 - 31©
2011 Pearson Education, Inc. publishing as Prentice Hall Mixing Options to Develop a Plan Level strategy Daily production is uniform Use inventory or idle time as buffer Stable production leads to better quality and productivity Some combination of capacity options, a mixed strategy, might be the best solution
32.
13 - 32©
2011 Pearson Education, Inc. publishing as Prentice Hall Graphical Methods Popular techniques Easy to understand and use Trial-and-error approaches that do not guarantee an optimal solution Require only limited computations
33.
13 - 33©
2011 Pearson Education, Inc. publishing as Prentice Hall Graphical Methods 1. Determine the demand for each period 2. Determine the capacity for regular time, overtime, and subcontracting each period 3. Find labor costs, hiring and layoff costs, and inventory holding costs 4. Consider company policy on workers and stock levels 5. Develop alternative plans and examine their total costs
34.
13 - 34©
2011 Pearson Education, Inc. publishing as Prentice Hall Roofing Supplier Example 1 Table 13.2 Month Expected Demand Production Days Demand Per Day (computed) Jan 900 22 41 Feb 700 18 39 Mar 800 21 38 Apr 1,200 21 57 May 1,500 22 68 June 1,100 20 55 6,200 124 = = 50 units per day 6,200 124 Average requirement = Total expected demand Number of production days
35.
13 - 35©
2011 Pearson Education, Inc. publishing as Prentice Hall Roofing Supplier Example 1 Figure 13.3 70 – 60 – 50 – 40 – 30 – 0 – Jan Feb Mar Apr May June = Month 22 18 21 21 22 20 = Number of working days Productionrateperworkingday Level production using average monthly forecast demand Forecast demand
36.
13 - 36©
2011 Pearson Education, Inc. publishing as Prentice Hall Roofing Supplier Example 2 Table 13.3 Cost Information Inventory carrying cost $ 5 per unit per month Subcontracting cost per unit $20 per unit Average pay rate $10 per hour ($80 per day) Overtime pay rate $17 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit
37.
13 - 37©
2011 Pearson Education, Inc. publishing as Prentice Hall Roofing Supplier Example 2 Table 13.3 Cost Information Inventory carrying cost $ 5 per unit per month Subcontracting cost per unit $20 per unit Average pay rate $10 per hour ($80 per day) Overtime pay rate $17 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit Month Production Days Production at 50 Units per Day Demand Forecast Monthly Inventory Change Ending Inventory Jan 22 1,100 900 +200 200 Feb 18 900 700 +200 400 Mar 21 1,050 800 +250 650 Apr 21 1,050 1,200 -150 500 May 22 1,100 1,500 -400 100 June 20 1,000 1,100 -100 0 1,850 Total units of inventory carried over from one month to the next = 1,850 units Workforce required to produce 50 units per day = 10 workers
38.
13 - 38©
2011 Pearson Education, Inc. publishing as Prentice Hall Roofing Supplier Example 2 Table 13.3 Cost Information Inventory carrying cost $ 5 per unit per month Subcontracting cost per unit $20 per unit Average pay rate $10 per hour ($80 per day) Overtime pay rate $17 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit Month Production Days Production at 50 Units per Day Demand Forecast Monthly Inventory Change Ending Inventory Jan 22 1,100 900 +200 200 Feb 18 900 700 +200 400 Mar 21 1,050 800 +250 650 Apr 21 1,050 1,200 -150 500 May 22 1,100 1,500 -400 100 June 20 1,000 1,100 -100 0 1,850 Total units of inventory carried over from one month to the next = 1,850 units Workforce required to produce 50 units per day = 10 workers Costs Calculations Inventory carrying $9,250 (= 1,850 units carried x $5 per unit) Regular-time labor 99,200 (= 10 workers x $80 per day x 124 days) Other costs (overtime, hiring, layoffs, subcontracting) 0 Total cost $108,450
39.
13 - 39©
2011 Pearson Education, Inc. publishing as Prentice Hall Roofing Supplier Example 2 Figure 13.4 Cumulativedemandunits 7,000 – 6,000 – 5,000 – 4,000 – 3,000 – 2,000 – 1,000 – – Jan Feb Mar Apr May June Cumulative forecast requirements Cumulative level production using average monthly forecast requirements Reduction of inventory Excess inventory 6,200 units
40.
13 - 40©
2011 Pearson Education, Inc. publishing as Prentice Hall Roofing Supplier Example 3 Table 13.2 Month Expected Demand Production Days Demand Per Day (computed) Jan 900 22 41 Feb 700 18 39 Mar 800 21 38 Apr 1,200 21 57 May 1,500 22 68 June 1,100 20 55 6,200 124 Minimum requirement = 38 units per day
41.
13 - 41©
2011 Pearson Education, Inc. publishing as Prentice Hall Roofing Supplier Example 3 70 – 60 – 50 – 40 – 30 – 0 – Jan Feb Mar Apr May June = Month 22 18 21 21 22 20 = Number of working days Productionrateperworkingday Level production using lowest monthly forecast demand Forecast demand
42.
13 - 42©
2011 Pearson Education, Inc. publishing as Prentice Hall Roofing Supplier Example 3 Table 13.3 Cost Information Inventory carrying cost $ 5 per unit per month Subcontracting cost per unit $20 per unit Average pay rate $10 per hour ($80 per day) Overtime pay rate $17 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit
43.
13 - 43©
2011 Pearson Education, Inc. publishing as Prentice Hall Roofing Supplier Example 3 Table 13.3 Cost Information Inventory carry cost $ 5 per unit per month Subcontracting cost per unit $10 per unit Average pay rate $ 5 per hour ($40 per day) Overtime pay rate $ 7 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit In-house production = 38 units per day x 124 days = 4,712 units Subcontract units = 6,200 - 4,712 = 1,488 units
44.
13 - 44©
2011 Pearson Education, Inc. publishing as Prentice Hall Table 13.3 Cost Information Inventory carry cost $ 5 per unit per month Subcontracting cost per unit $10 per unit Average pay rate $ 5 per hour ($40 per day) Overtime pay rate $ 7 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit Roofing Supplier Example 3 In-house production = 38 units per day x 124 days = 4,712 units Subcontract units = 6,200 - 4,712 = 1,488 units Costs Calculations Regular-time labor $75,392 (= 7.6 workers x $80 per day x 124 days) Subcontracting 29,760 (= 1,488 units x $20 per unit) Total cost $105,152
45.
13 - 45©
2011 Pearson Education, Inc. publishing as Prentice Hall Roofing Supplier Example 4 Table 13.2 Month Expected Demand Production Days Demand Per Day (computed) Jan 900 22 41 Feb 700 18 39 Mar 800 21 38 Apr 1,200 21 57 May 1,500 22 68 June 1,100 20 55 6,200 124 Production = Expected Demand
46.
13 - 46©
2011 Pearson Education, Inc. publishing as Prentice Hall Roofing Supplier Example 4 70 – 60 – 50 – 40 – 30 – 0 – Jan Feb Mar Apr May June = Month 22 18 21 21 22 20 = Number of working days Productionrateperworkingday Forecast demand and monthly production
47.
13 - 47©
2011 Pearson Education, Inc. publishing as Prentice Hall Roofing Supplier Example 4 Table 13.3 Cost Information Inventory carrying cost $ 5 per unit per month Subcontracting cost per unit $20 per unit Average pay rate $10 per hour ($80 per day) Overtime pay rate $17 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit
48.
13 - 48©
2011 Pearson Education, Inc. publishing as Prentice Hall Roofing Supplier Example 4 Table 13.3 Cost Information Inventory carrying cost $ 5 per unit per month Subcontracting cost per unit $10 per unit Average pay rate $ 5 per hour ($40 per day) Overtime pay rate $ 7 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit Month Forecast (units) Daily Prod Rate Basic Production Cost (demand x 1.6 hrs/unit x $10/hr) Extra Cost of Increasing Production (hiring cost) Extra Cost of Decreasing Production (layoff cost) Total Cost Jan 900 41 $ 14,400 — — $ 14,400 Feb 700 39 11,200 — $1,200 (= 2 x $600) 12,400 Mar 800 38 12,800 — $600 (= 1 x $600) 13,400 Apr 1,200 57 19,200 $5,700 (= 19 x $300) — 24,900 May 1,500 68 24,000 $3,300 (= 11 x $300) — 24,300 June 1,100 55 17,600 — $7,800 (= 13 x $600) 25,400 $99,200 $9,000 $9,600 $117,800 Table 13.4
49.
13 - 49©
2011 Pearson Education, Inc. publishing as Prentice Hall Comparison of Three Plans Table 13.5 Cost Plan 1 Plan 2 Plan 3 Inventory carrying $ 9,250 $ 0 $ 0 Regular labor 99,200 75,392 99,200 Overtime labor 0 0 0 Hiring 0 0 9,000 Layoffs 0 0 9,600 Subcontracting 0 29,760 0 Total cost $108,450 $105,152 $117,800 Plan 2 is the lowest cost option
50.
13 - 50©
2011 Pearson Education, Inc. publishing as Prentice Hall Mathematical Approaches Useful for generating strategies Transportation Method of Linear Programming Produces an optimal plan Management Coefficients Model Model built around manager’s experience and performance Other Models Linear Decision Rule Simulation
51.
13 - 51©
2011 Pearson Education, Inc. publishing as Prentice Hall Transportation Method Table 13.6 Costs Regular time $40 per tire Overtime $50 per tire Subcontracting $70 per tire Carrying $ 2 per tire per month Sales Period Mar Apr May Demand 800 1,000 750 Capacity: Regular 700 700 700 Overtime 50 50 50 Subcontracting 150 150 130 Beginning inventory 100 tires
52.
13 - 52©
2011 Pearson Education, Inc. publishing as Prentice Hall Transportation Example Important points 1. Carrying costs are $2/tire/month. If goods are made in one period and held over to the next, holding costs are incurred 2. Supply must equal demand, so a dummy column called “unused capacity” is added 3. Because back ordering is not viable in this example, cells that might be used to satisfy earlier demand are not available
53.
13 - 53©
2011 Pearson Education, Inc. publishing as Prentice Hall Transportation Example Important points 4. Quantities in each column designate the levels of inventory needed to meet demand requirements 5. In general, production should be allocated to the lowest cost cell available without exceeding unused capacity in the row or demand in the column
54.
13 - 54©
2011 Pearson Education, Inc. publishing as Prentice Hall Transportation Example Table 13.7
55.
13 - 55©
2011 Pearson Education, Inc. publishing as Prentice Hall Management Coefficients Model Builds a model based on manager’s experience and performance A regression model is constructed to define the relationships between decision variables Objective is to remove inconsistencies in decision making
56.
13 - 56©
2011 Pearson Education, Inc. publishing as Prentice Hall Other Models Linear Decision Rule Minimizes costs using quadratic cost curves Operates over a particular time period Simulation Uses a search procedure to try different combinations of variables Develops feasible but not necessarily optimal solutions
57.
13 - 57©
2011 Pearson Education, Inc. publishing as Prentice Hall Summary of Aggregate Planning Methods Techniques Solution Approaches Important Aspects Graphical methods Trial and error Simple to understand and easy to use. Many solutions; one chosen may not be optimal. Transportation method of linear programming Optimization LP software available; permits sensitivity analysis and new constraints; linear functions may not be realistic. Table 13.8
58.
13 - 58©
2011 Pearson Education, Inc. publishing as Prentice Hall Summary of Aggregate Planning Methods Techniques Solution Approaches Important Aspects Management coefficients model Heuristic Simple, easy to implement; tries to mimic manager’s decision process; uses regression. Simulation Change parameters Complex; may be difficult to build and for managers to understand. Table 13.8
59.
13 - 59©
2011 Pearson Education, Inc. publishing as Prentice Hall Aggregate Planning in Services Controlling the cost of labor is critical 1. Accurate scheduling of labor-hours to assure quick response to customer demand 2. An on-call labor resource to cover unexpected demand 3. Flexibility of individual worker skills 4. Flexibility in rate of output or hours of work
60.
13 - 60©
2011 Pearson Education, Inc. publishing as Prentice Hall Five Service Scenarios Restaurants Smoothing the production process Determining the optimal workforce size Hospitals Responding to patient demand
61.
13 - 61©
2011 Pearson Education, Inc. publishing as Prentice Hall Five Service Scenarios National Chains of Small Service Firms Planning done at national level and at local level Miscellaneous Services Plan human resource requirements Manage demand
62.
13 - 62©
2011 Pearson Education, Inc. publishing as Prentice Hall Law Firm Example Table 13.9 Labor-Hours Required Capacity Constraints (2) (3) (4) (5) (6) (1) Forecasts Maximum Number of Category of Best Likely Worst Demand in Qualified Legal Business (hours) (hours) (hours) People Personnel Trial work 1,800 1,500 1,200 3.6 4 Legal research 4,500 4,000 3,500 9.0 32 Corporate law 8,000 7,000 6,500 16.0 15 Real estate law 1,700 1,500 1,300 3.4 6 Criminal law 3,500 3,000 2,500 7.0 12 Total hours 19,500 17,000 15,000 Lawyers needed 39 34 30
63.
13 - 63©
2011 Pearson Education, Inc. publishing as Prentice Hall Five Service Scenarios Airline industry Extremely complex planning problem Involves number of flights, number of passengers, air and ground personnel, allocation of seats to fare classes Resources spread through the entire system
64.
13 - 64©
2011 Pearson Education, Inc. publishing as Prentice Hall Yield Management Allocating resources to customers at prices that will maximize yield or revenue 1. Service or product can be sold in advance of consumption 2. Demand fluctuates 3. Capacity is relatively fixed 4. Demand can be segmented 5. Variable costs are low and fixed costs are high
65.
13 - 65©
2011 Pearson Education, Inc. publishing as Prentice Hall Demand Curve Yield Management Example Figure 13.5 Passed-up contribution Money left on the table Potential customers exist who are willing to pay more than the $15 variable cost of the room, but not $150 Some customers who paid $150 were actually willing to pay more for the roomTotal $ contribution = (Price) x (50 rooms) = ($150 - $15) x (50) = $6,750 Price Room sales 100 50 $150 Price charged for room $15 Variable cost of room
66.
13 - 66©
2011 Pearson Education, Inc. publishing as Prentice Hall Total $ contribution = (1st price) x 30 rooms + (2nd price) x 30 rooms = ($100 - $15) x 30 + ($200 - $15) x 30 = $2,550 + $5,550 = $8,100 Demand Curve Yield Management Example Figure 13.6 Price Room sales 100 60 30 $100 Price 1 for room $200 Price 2 for room $15 Variable cost of room
67.
13 - 67©
2011 Pearson Education, Inc. publishing as Prentice Hall Yield Management Matrix Durationofuse TendtobeTendtobe Uncertainpredictable Price Tend to be fixed Tend to be variable Quadrant 1: Quadrant 2: Movies Hotels Stadiums/arenas Airlines Convention centers Rental cars Hotel meeting space Cruise lines Quadrant 3: Quadrant 4: Restaurants Continuing care Golf courses hospitals Internet service providers Figure 13.7
68.
13 - 68©
2011 Pearson Education, Inc. publishing as Prentice Hall Making Yield Management Work 1. Multiple pricing structures must be feasible and appear logical to the customer 2. Forecasts of the use and duration of use 3. Changes in demand
69.
13 - 69©
2011 Pearson Education, Inc. publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.