Aggregate Production Planning (APP)

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Aggregate Production Planning (APP)
Aggregate Production Planning (APP)
Demand Planning and Forecasting
A macro approach to operational planning that
focuses on overall capacity. APP links
higher-level facility planning to lower level
scheduling decisions within a medium-term
planning horizon (2 to 18 months).
Master Production Scheduling (MPS)
Material Requirements Planning (MRP)
Capacity Planning (CRP)
Material and Capacity Plans
Shop Floor Control
Purchasing
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APP (cont)

• Role of Aggregate Planning
• Long-term planning function
• Strategic preparation for tactical actions
• Aggregate Planning Issues
• Staffing -hiring, firing, training
• Procurement - supplier contracts for materials,
  components
• Sub-Contracting - capacity vendoring
• Marketing - promotional activities

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Basic Aggregate Planning (cont.)
Cotton Shirts
Mens
Womens
Boys
Girls
Style B
Style C
Style A
Week1
Week2
Week3
Week4
Week5
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Basic Aggregate Planning

• Problem project production of single product
  over planning horizon.
• Inputs

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Pure APP Planning Strategies
Demand
Production
Units
Time
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Pure APP Planning Strategies
Demand Production
Units
Time
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Demand Constraints
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Conclusions

• No single AP model is right for every situation
• Simplicity promotes understanding
• Linear programming is a useful AP tool
• Robustness matters more than precision
• Formulation and Solution are not separate
  activities.