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    Steps in Aggregate Capacity Planning

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    Aditya
    Aggregate capacity planning involves 5 steps: 1) preparing individual product sales forecasts, 2) summing forecasts into aggregate demand, 3) transforming aggregate demand into production capacity needs for labor, materials, and machines, 4) developing alternative resource schemes to supply necessary production capacity to meet aggregate demand, and 5) selecting the best capacity plan from alternatives to satisfy demand and organizational objectives. The process flows from market forecasts to determining required production and resource capacity.

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    Steps in Aggregate Capacity Planning

    Uploaded by

    Aditya
    2K views3 pages
    Aggregate capacity planning involves 5 steps: 1) preparing individual product sales forecasts, 2) summing forecasts into aggregate demand, 3) transforming aggregate demand into production capacity needs for labor, materials, and machines, 4) developing alternative resource schemes to supply necessary production capacity to meet aggregate demand, and 5) selecting the best capacity plan from alternatives to satisfy demand and organizational objectives. The process flows from market forecasts to determining required production and resource capacity.

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    STEPS IN AGGREGATE CAPACITY PLANNING

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    Aggregate capacity planning involves 5 steps: 1) preparing individual product sales forecasts, 2) summing forecasts into aggregate demand, 3) transforming aggregate demand into production capacity needs for labor, materials, and machines, 4) developing alternative resource schemes to supply necessary production capacity to meet aggregate demand, and 5) selecting the best capacity plan from alternatives to satisfy demand and organizational objectives. The process flows from market forecasts to determining required production and resource capacity.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    2K views3 pages

    Steps in Aggregate Capacity Planning

    Uploaded by

    Aditya
    Aggregate capacity planning involves 5 steps: 1) preparing individual product sales forecasts, 2) summing forecasts into aggregate demand, 3) transforming aggregate demand into production capacity needs for labor, materials, and machines, 4) developing alternative resource schemes to supply necessary production capacity to meet aggregate demand, and 5) selecting the best capacity plan from alternatives to satisfy demand and organizational objectives. The process flows from market forecasts to determining required production and resource capacity.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 3

    STEPS IN AGGREGATE

    CAPACITY PLANNING
    1.Prepare the sales forecast for each
    product that indicates the quantities to be sold in
    each time period
    2. Sum up the individual product or service forecast
    into one aggregate demand for the factory.
    3. Transform the aggregate demand for each time
    period into labour, material, machines & other
    elements of production capacity to satisfy aggregate
    demand.
    4. Develop alternatives resource schemes
    for supplying the necessary production
    capacity to supprt the cumulative
    aggregate demand.
    5. Select the capacity plan from among the
    alternatives considered that satisfies
    aggregate demand & best meets the
    objective of the organisation.
    FLOW CHART OF AGGREGATE
    PLAN
    Market Resource Base
    environment Technology
    Forecast & customer Capacity ( Facilities,
    order material , labour)

    Aggregate
    production plan

    Master production
    schedule
    Material Capacity
    Requirements Requirement

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