Aggregate

Planning
 Planning Horizons
Responsible:
Short-range plans Operations
Job assignments managers
Ordering
Job scheduling Intermediate-range plans
Sales planning Responsible:
Dispatching
Production planning and Top executives
Responsible: budgeting
Long-range plans
Operations Setting employment, inventory,
R&D
managers, subcontracting levels
New product plans
supervisors, Analyzing operating plans
Capital expenses
foremen
Facility location, expansion

Today 3 Months 1 year 5 years

Planning Horizon

13-7
Planning Tasks and Responsibilities

13-8
 Forecasting & Planning

Long Range Plans 

invest, location,capacity,

Intermediate Range Plans 

Forecasting
Aggregate Planning

Short Range Plans

13-9
 Relationships of the Aggregate Plan

Marketplace Product Research and

and Demand Decisions Technology

Demand Process
Forecasts, Planning & Capacity
orders Decisions Work Force
Raw Materials
Available
Aggregate Inventory On
Plan for Hand
Production External
Capacity
Master Subcontractors
Production
Schedule, and MRP systems

Detailed Work
Schedules

13-11
 Aggregate Planning

¨ Provides the quantity and timing of production for

intermediate future
¨ Usually 3 to 18 months into future
¨ Combines (‘aggregates’) production
¨ Often expressed in common units
¨ Example: Hours, dollars, equivalents
(e.g., FTE students)
¨ Involves capacity and demand variables

13-13
 Aggregate Planning Goals
¨ Meet demand
¨ Use capacity efficiently
¨ Meet inventory policy
¨ Minimize cost
¨ Labor
¨ Inventory
¨ Plant & equipment
¨ Subcontract

13-14
 Aggregate Planning Strategies
Pure Strategies

¨ Capacity Options — change capacity:

¨ changing inventory levels
¨ varying work force size by hiring or layoffs
¨ varying production capacity through overtime or idle
time
¨ subcontracting
¨ using part-time workers

13-15
 Aggregate Planning Strategies
Pure Strategies

¨ Demand Options — change demand:

¨ influencing demand
¨ backordering during high demand periods
¨ counterseasonal product mixing

13-16
 Aggregate Scheduling Options -
Advantages and Disadvantages
Option Advantage Disadvantage Some
Comments
Changing Changes in Inventory Applies mainly
inventory levels human resources holding costs; to production,
are gradual, not Shortages may not service,
abrupt result in lost operations
production sales
changes

Varying Avoids use of Hiring, layoff, Used where size

workforce size other alternatives and training of labor pool is
by hiring or costs large
layoffs

13-17
 Advantages/Disadvantages -
Continued
Option Advantage Disadvantage Some
Comments
Varying Matches seasonal Overtime Allows
production rates fluctuations premiums, tired flexibility within
through overtime without workers, may not the aggregate
or idle time hiring/training meet demand plan
costs
Subcontracting Permits Loss of quality Applies mainly
flexibility and control; reduced in production
smoothing of the profits; loss of settings
firm's output future business

13-18
 Advantages/Disadvantages -
Continued
Option Advantage Disadvantage Some
Comments
Using part-time Less costly and High Good for
workers more flexible turnover/training unskilled jobs in
than full-time costs; quality areas with large
workers suffers; temporary labor
scheduling pools
difficult
Influencing Tries to use Uncertainty in Creates
demand excess capacity. demand. Hard to marketing ideas.
Discounts draw match demand to Overbooking
new customers. supply exactly. used in some
businesses.

13-19
 Advantage/Disadvantage -
Continued
Option Advantage Disadvantage Some
Comments
Back ordering May avoid Customer must Many companies
during high- overtime. Keeps be willing to backorder.
demand periods capacity constant wait, but
goodwill is lost.
Counterseasonal Fully utilizes May require Risky finding
products and resources; allows skills or products or
service mixing stable workforce. equipment services with
outside a firm's opposite demand
areas of patterns.
expertise.

13-20
 The Extremes

Level Chase
Strategy Strategy

Production equals demand

Production rate is
(pd tingkat produksi
constant (pd tingkat
terendah) , penyesuaian
rata-rata)  jml
produksi dg
tenaga kerja tetap
lembur/hiring/layoff
outsource/kontrak
13-21
 Forecast and Average Forecast
P r o d u c tio n r a te p e r w o r k in g d a y Demand
70
Forecast
Level production using
60 Demand
average monthly
50 forecast demand

40

30

20

10

0
Jan Feb Mar Apr May Jun

22 18 21 21 22
20
13-25
 PREDIKSI PERMINTAAN (DEMAND)
BULANAN
BULAN PERKIRAKA HARI KERJA DEMAND PRODUKSI AKUMLS
N DEMAND PRODUKSI PER HARI RATA RATA PERSED
(unit) (unit) (unit) PER BULAN
JAN 900 22 41
FEB 700 18 39
MAR 800 21 38
APR 1200 21 57
MEI 1500 22 68
JUN 1100 20 55
6200 124

DEMAND RATA RATA PER HARI = TOTAL DEMAND : HARI KERJA

6200 : 124 = 50 unit per hari
Apabila biaya persediaan per unit per hari Rp 5, jam kerja
reguler per hari 8 jam, pembuatan per unit memerlukan waktu
1,6 jam, upah per jam reguler Rp 5, maka
 KAPASITAS TETAP DG
FLUKTUASI PERSEDIAAN BERIMBANG
BULAN PERKIRAKAN HARI DEMAND PRODUKSI AKUMUL
DEMAND KERJA PER HARI RATA RATA ASI
PRODUKSI PER BULAN PERSED
JAN 900 22 41 50 X 22 (1100) 200
FEB 700 18 39 50 x 18 (900) 400
MAR 800 21 38 50 x 21 (1050) 650
APR 1200 21 57 50 x 21 (1050) 500
MEI 1500 22 68 50 x 22 (1100) 100
JUN 1100 20 55 50 x 20 (1000) 0
6200 124 x = 50 1850

Upah kerja reguler per hari = 5 x 8 = 40

Produksi per hari per pekerja  8jam/ 1,6 = 5 unit; untuk 50 unit = 5 x 10 orang
Biaya persediaan = 1850 x Rp5 = 9250
Biaya jam kerja reguler = 10 pekerja x 40 upah per hari x 124 hari = 49600
Biaya total = Biaya persediaan + biaya jam kerja reguler = 58850
Cumulative Demand Graph for Plan
1
7,000
6,000
Cumulative Demand (Units)

Reduction of
5,000 Cumulative level inventory
production using
4,000 average monthly
forecast
3,000 requirements
2,000 Cumulative forecast
1,000 requirements

Excess inventory

Jan Feb Mar Apr May Jun

13-28
 KAPASITAS MINIMAL DG SUBKONTRAK
BULAN PERKIRAKAN HARI KERJA DEMAND PER
DEMAND PRODUKSI/BLN HARI
JAN 900 22 41
FEB 700 18 39
MAR 800 21 38 *
APR 1200 21 57
MEI 1500 22 68
JUN 1100 20 55
6200 124
jml produksi sendiri = 38 unit per hari x 124 hari kerja = 4.712 unit
Subkontrak = 6.200 – 4.712 = 1.488 unit
Diketahui pembuatan per unit dibutuhkan waktu 1,6 jam dan jam kerja reguler
per hari 8 jam, maka utk memproduksi 38 unit per hari dibutuhkan 7,6 (8)
pekerja. Apabila upah per jam kerja Rp 5, biaya subkontrak per unit Rp 10,
Biaya jam kerja reguler = 8 pekerja x Rp 40 per hari x 124 hari = Rp 39.680
Biaya subkontrak = 1.488 unit x Rp 10 per unit = Rp 14.880
 Aggregate Production Plan
Months January February

Aggregate Production Plan

(shows the total quantity of 1,500 1,200
amplifiers
Weeks 1 2 3 4 5 6 7 8
Master Production Schedule
(Shows the specific type
and quantity of amplifier to
be produced

240 watt amplifier 100 100 100 100

150 watt amplifier 500 500 450 450

75 watt amplifier 300 100