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(“Aggregate planning in manufacturing and aggregate planning in services Assignment”, n.d.) (Aggregate Planning in Manufacturing and Aggregate Planning in Services Assignment) “Aggregate Planning in Manufacturing and Aggregate Planning in Services Assignment”, n.d. https://studentshare.org/business/1686337-aggregate-planning-in-manufacturing-and-aggregate-planning-in-services.
Aggregate planning in services differs from aggregate planning in manufacturing in the following ways: 1. Most services are perishable and cannot be inventoried. It is virtually impossible to produce the service early in anticipation of higher demand at a later time. 2. Demand for services is often difficult to predict. Demand variations may be more severe and more frequent. 3. Services are more customized than manufactured goods and can be offered in many different forms. This variability makes it difficult to allocate capacity. Units of capacity may also be hard to define. 4. Because most services cannot be transported, service capacity must be available at the appropriate place as well as the appropriate time. 5. Service capacity is generally altered by changes in labor, rather than by equipment or space, and labor is highly flexible resource. Differences between aggregate planning in manufacturing and servicesoDemand for service can be difficult to predictoCapacity availability can be difficult to predictoLabor flexibility can be an advantage in servicesoServices occur when they are rendered•Hospitalsallocate funds, stuff and supplies to meet the demands of patients for their medical services•AirlinesoComplex due to the large number of factors involvedoCapacity decisions must also take into account the percentage of seats to be allocated to various fareclasses in order to maximize profit or yield oRestaurantsSmoothing the service rate, determining workforce size, and managing demand to match afixed capacityPerishable inventoryDisaggregation•Aggregate plandisaggregationmaster scheduleMaster Scheduling—the result of disaggregating an aggregate plan•The heart of production planning and control•Covers 6-8 weeks ahead•Shows quantity and timing of specific end items for a scheduled horizon•Determines the quantity needed to meet demand from all sources•Interfaces with: marketing, capacity planning, production planning, distribution planning•Provides senior management with the ability to determine whether the business plan and its strategic objectiveswill be achieved•Master scheduling process:oInputs going into Master ScheduleBeginning inventoryForecastCustomer committed ordersoOutputs coming out of master scheduleProjected inventoryMaster production schedule—the basis for short range planningUncommitted inventory available to promise inventoryRCCP—rough cut capacity planning•a tool used in the validation process•approximate balancing of capacity and demand to test the feasibility of a master schedule•involves checking the capacities of the following to ensure no gross deficiencies exist that will render the MSunworkableoproductionowarehouse facilitiesolaborovendorsTime FencesForecasts and Customer Orders Projected on HandAvailable-to-Promise•Worksheet Problems•CostsChapter 13: Inventory ManagementInventory—a stock or store of goods—typical firm has roughly 30% of its current assets and as much as 90% of itsworking capital invested in inventory•Types of InventoryoRaw materials and purchased partsoWork in process—partially completedoFinished goods inventories—manufacturing and merchandiseoMaintenance and repairs inventory oGoods in transit to warehouses or customersIndependent and Dependent Demand Items•Independent demand items—items that are ready to be sold or used—ex. PCs•Dependent demand items—components of finished products—ex. PC componentFunctions of Inventory:•To meet anticipated demand—anticipation stock•To smooth production requirements—seasonal demand•To decouple operations—buffer between successive operations in case of a breakdown• What are the differences between different aggregate planning strategies?3 Types of Aggregate Planning Strategies. Level Strategy: The goal of an aggregate planning strategy is to keep the production rate and the workforce level. ... . Chase Strategy: As the name implies, you are chasing market demand. ... . Hybrid Strategy: There is a third alternative, which is a hybrid of the previous two strategies.. How does aggregate planning for services differ from aggregate production planning for products?since services can't be put in inventory, they generally are based on human resource requirements. How does aggregate planning for services differ from aggregate production planning for products? A. There is no difference.
What is the difference between aggregate planning and sales and operations planning?Sales and operations planning also is known as aggregate planning because this tool considers the whole organization. In this process, high-level management holds meetings to review the financial impact of projections on supply and demand.
How is aggregate planning used in service and non service operations?Aggregate planning compiles the information on what a business needs to operate, from sales forecasts to production and inventory, to customer service, and then determines whether there are periods of time when the company has excess capacity or not enough capacity.
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