What is aggregate planning?
The Aggregate Planning, also known as Aggregate Production Planning and Scheduling attache case is a method to determine the amount of production and its development over time medium term.
So that the Aggregate planning is the process of translating the annual business plans and marketing plan production, usually medium term.
While the business plan is usually expressed in monetary units (profits, revenue and costs), the plan added production is defined by production units or one unit of output (or input) added, such as product units manufactured, or hours of work, etc.
An added measure is particularly useful if the production plan includes several different products. Relevant costs for gregada planning include inventory costs, exchange capacity (outsourcing, expansion or reduction of facilities and / or equipment) and opportunity costs of lost sales.
In general, the goal of aggregate planning is to minimize costs for the planning period. However, there are other more important that low cost strategic aspects. These strategy are smooth changes in employment levels, reduce inventory levels or meet a high level of service.
For manufacturers, the aggregate program associated strategic goals of the company with production plans, but in the aggregate service organizations strategic goals related program with the programs of the workforce.
So Aggregated Planning requires four elements:
1. A general logic unit for measuring sales and production, such as air conditioning units in GE or cases of beer in Anheuser-Bush.
2. A demand forecast to plan a reasonable interim period, these aggregate.
3. A method for determining costs.
4. A model that combines forecasts and costs in order to make programming decisions for the planning horizon.