LECTURE-26 -OPERATIONS MANAGEMENT BBA S4-AGGREGATE PLANNING (PART-1)

Aggregate Planning

 Aggregate planni is a process in which overall operations of the organization are planned in advance over a period of 3 to 18 months .   It is done by matching the forecasted demand with overall resources of the organization such as men, materials,machine and money.
Features of aggregate planning
1. Matches demand to internal resources of the organization
2. Aggregate plans are made for 3 to 18 months timeframe
3. Concentrate on input and output in common unit at aggregate level

Aggregate Planning Process

 Planning process in any organization can be divided into three following parts
1. Long range plans or Business plan (. 2 to 5 years)
2. Medium range plans or aggregate plans ( 3 months to 18 months)
3. Short range plans ( week to 3 months)

Strategies in aggregate planning  
Following are the 3 types of Strategies used in aggregate planning
1. Level strategy
2.Chase strategy
3. Hybrid Strategy  
Costs in Aggregate Planning  
1. Cost of production
2. Shortage cost  
3. Backlog or lost sale cost  
4. Hiring and Training cost  5.Inventory Carrying cost

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