Aggregate Planning and Process Control

1st Class assignment – Due June 10th, 2014. Question: In 500 words or less, explain the purpose and roll for aggregate planning and processing design as tolls for engineering improved inventory management strategies. Scope of supply chain management : - Moving info and material from step to step in the process in order to meet customer demand (Planning, sourcing, making, delivering and returning). Aggregate Planning for improved inventory management Strategies – You need to determine which type of strategy you need in order to satisfy your customer demand as that info is necessary before you look at each of the below plans. A chase strategy would make you lean more toward the intermediate and short range as you are always changing while a stable strategy would have you focusing on the long range to immediate range as you aren’t making as many day to day changes. 1) Long Range Plan (Looking forward >1 year) - Establishing the 10,000 ft business plan by looking at planning your processes, looking at capacity and establishing your supply chain. 2) Intermediate range Plan (looking 3-18 months ahead) - This would be putting the long range plan into motion but actually working on the management details such as forecasting (demand management), sales planning (budgeting), workforce, MRP, transportation equipment/workforce, manufacturing equipment. 3) Short range planning (day to day) - This is the daily aspect of the business which would encompass daily workforce planning, dispatching, scheduling, order entry, etc. It is necessary to look at all 3 steps to ensure that you are sticking to the initial plan and are looking for ways to improve the process as it filters down through the ranges. Processing design for improved inventory management

1) Process flow charts

- You need to understand the process from the ordering point all the way through until finished goods are shipped to the customers. Understanding how each process runs and looking at potential bottlenecks are...