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AM - HR Aggregate Planning

This document provides an overview of aggregate planning and leveling strategies. It summarizes an active model that contains a 6-month aggregate planning problem using a leveling strategy, where the production levels can be adjusted for regular time, overtime, and subcontracting. The model ensures there are no shortages and does not allow for hiring or firing under the leveling strategy.

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Kim Yến Vũ
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44 views4 pages

AM - HR Aggregate Planning

This document provides an overview of aggregate planning and leveling strategies. It summarizes an active model that contains a 6-month aggregate planning problem using a leveling strategy, where the production levels can be adjusted for regular time, overtime, and subcontracting. The model ensures there are no shortages and does not allow for hiring or firing under the leveling strategy.

Uploaded by

Kim Yến Vũ
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Overview

Aggregate Planning
Leveling Strategies

The Active Model contains a 6 month aggregate planning problem using a leveling strategy. You can use the
scrollbars to adjust the base level of daily production during the month, the amount of daily overtime and the amount of
subcontracting.

Please note that the formulas are set up such that subcontracting is chosen before overtime since in the example
the subcontracting cost per unit is less than the the overtime cost per unit. Also note that shortages are not
permitted and that under a leveling strategy there would NOT be any hiring or firing.

518974032.xls
Overview

e amount of

518974032.xls
Aggregate Planning Total Cost $58,850

Reset Data Questions Leveling Plans

Costs (per unit) Starting Conditions 1800


Reg time $ 8.00 Init inventory 1600
Overtime $ 11.20 Units last pd
Subcontract $ 10.00 1400

Units
Holding $ 5.00 Reg time level 50 1200
Shortage Not permitted OT cap/day 10
1000
Increase Do not occur under levelSubcon cap 1000
Decrease Do not occur under leveling 800
600
400
Production
days per Regular Time Overtime Subcontract Total 200
Period Demand month Production Production Production Production0 Inventory Holding Shortage Change Increase
Jan 900 22 1100 0 0 1100 Jan 200 Feb 200 Mar Apr0 May 0 June 0
Feb 700 18 900 0 0 900 400 400 0 -200 0
Mar 800 21 1050 0 0 1050 650 650 0 150 150
Apr 1200 21 1050 0 0 Subcontract
1050 Production500 Month
500 Overtime0Production 0 0
May 1500 22 1100 0 0 Regular
1100 Time
100Production
100 0 50 50
June 1100 20 1000 0 0 1000 0 0 0 -100 0
Total 6200 124 6200 0 0 6200 1850 0 200
Monthly ave net 1033.33333
Daily average net demand 50

Cost $49,600 $0 $0 $9,250

Active Models to accompany Operations Management by Heizer & Render


Decrease
0
200
0
0
0
100
300

Active Models to accompany Operations Management by Heizer & Render

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