Outline Chapter 8: Aggregate Planning in the Supply Outputs of Aggregate Plan Production – Take a 1 year plan for a plant that monitors weekly production
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Aggregate planning in make to order environments is approach to develop the aggregate production plan for c = monthly production capacity of entire plant.
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The Aggregate Production Function, (plant and equipment) used in production,, The production function tells us how di erent amounts of capital and labor may be
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Objectives of Aggregate Planning Minimize cost and maximize profits Minimize inventory investment Minimize changes in workforce levels Minimize changes in production rates Maximize utilization of plant and equipment Manufacturing and Service Aggregate Plans Production Plan (manufacturing aggregate plan): A managerial statement of the period by period (time) production rates, work force
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