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CAPACITY AND CAPACITY AND CAPACITY AND AGGREGATE AGGREGATE AGGREGATE…
CAPACITY AND CAPACITY AND CAPACITY AND AGGREGATE AGGREGATE AGGREGATE PLANNING
CAPACITY PLANNING
- Capacity is defined as the ability to achieve, store or produce. For an organization, capacity would be the ability of a given system to produce output within the specific time period
AGGREGATE PLANNING
- Aggregate planning is an operational activity critical to the organization as it looks to balance long-term strategic planning with short term production success
REDUCING RISK WITH INCREMENTAL CHANGES
Leading with a onestep expansion
Leading demand with incremental expansion
Lagging demand with incremental expansion
Attempt to have an average capacity with incremental expansion
AGGREGATE PLANNING STRATEGIES
Capacity Option
Demand option
Mixing Options a Develop a Plan
UNDERSTANDING CAPACITY
Determines if demand will be satisfied
Three time horizons
Determine Fixed Costs
AGGREGATE PLANNING IN SERVICES
National Chains of Small Service Firms
Restaurants
Hospitals
Miscellaneous Services
Airline Industry