Aggregate planning, Project Management

Aggregate planning is an operational method that does an aggregate plan for the production procedure, in advance of 2 to 18 months, to provide an idea to management as to what amount of materials and another resources are to be procured and when, so that the sum cost of operations of the organization is kept to the smallest over that period.

The quantity of subcontracting of items, outsourcing, overtime of labour, numbers to be hired and fired in every period and the part of inventory to be held in stock and to be backlogged for every period are decided. All of these actions are completed within the framework of the company ethics, policies, and long term pledge to the society, community and the country of working.

Aggregate planning has various prerequired inputs which are predictable. They comprises:

  • Information about the resources and the facilities existing.
  • Demand forecast for the particular period for which the planning has to be made.
  • Cost of several alternatives and resources. This comprises of ordering cost, cost of holding inventory, cost of production by several production alternatives such as subcontracting, backordering and overtime.
  • Organizational policies as per the usage of above alternatives.

Aggregate Planning is related with matching supply and demand of output over the medium time range, up to near about 12 months into the future. Term aggregate implies that the planning is made for a single on the whole measure of output or, at the most, a few aggregated product classes. The purpose of aggregate planning is to set on the whole output levels in the near to medium future in the face of fluctuating or unsure demands. Aggregate planning might seek to affect demand and supply also.

Posted Date: 9/27/2012 4:00:32 AM | Location : United States







Related Discussions:- Aggregate planning, Assignment Help, Ask Question on Aggregate planning, Get Answer, Expert's Help, Aggregate planning Discussions

Write discussion on Aggregate planning
Your posts are moderated
Related Questions
Steps of Process Planning Procedure Step 1 Selection of Process: A process is necessary in order to shape form condition and join materials and components with the help of mac


1 Write short notes on Earned Value Method (EVM) 2 What are the common features available in PM software packages? 3 A project should earn sufficient return on the investment

Project Closure   Project closure is the last stage of the Project Life Cycle. The beginning of the Project Closure Phase is analysed by the completion of all project objectives

Problems associated with policies 1) Policies are liable to different interpretations since they allow discretion and are usually broad. If made specific they become rules and th

Project management Process According to PMBoK, project management is the application of knowledge, skills, tools and techniques to project activities in order to meet or exceed

Need for safety 1. Cost Saving: Two type  of costs  are incurred by the management  when an accident  occurs. There are the  direct  costs in the  form  of compensation paya

Question: (a) (i) What do you meant by "a change of scope" in a project? (ii) Unplanned changes (for e.g, unplanned expenses) might occur during the implementation phase of

T raditional definitions of Quality There are various definitions of quality. According to quality pioneer Joseph M. Juran quality has two meanings that are very important for

Internal and external factors influence the organisational culture Culture facilitates internal integration and harmony as well as external adaptation according to environmental