Graphical Method for Aggregate Output Planning Assignment Help

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Graphical Method for Aggregate Output Planning

The graphical planning procedure is a two-dimensional model relating cumulative demand to cumulative output capacity. It is one of the techniques used in developing and evaluating various alternative plans or a combination of these alternatives. The method evaluates various alternatives plans and identifies the best plan through trial and error. The steps are as follows:

  1. A graph is drawn by taking cumulative productive days for the planning time period on the X or horizontal axis, and cumulative units of output on the Y or vertical axis. The cumulative demand forecast for the entire planning time period is plotted on the graph.

  2. Based on the aggregate planning goals, a planning strategy is selected. Proposed output for each period in the planning horizon is computed and plotted on the same axis used to plot the demand.

  3. The planned output is compared with expected demand and periods of excess inventory and shortages are identified.

  4. The costs involved in the implementation of the plan are calculated.

  5. The plan is modified in a way to meet aggregate planning goals by repeating the steps 2 to 4 until a satisfactory plan is established.

Figure shows a graph that illustrates the above steps for level production and demand forecast. The graphical method described above is simple to understand, and requires only minimal computational effort.               

1082_graphical method.png

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