Aggregate Production Planning

This is a high-level corporate planning activity. The demand for products fluctuates considerably, within a high-variety discrete product manufacturing environment. Though, the resources of a firm, as like: capacity of workforce and machines, generally remain fixed throughout the planning horizon. Beneath such circumstances, to aggregate the information being processed is feasible solutions of the greatest approach to acquiring. For illustration, similar items can be grouped in machines processing, product families such products into machine cells, and workers along with various skills into labor centers. For aggregation reasons the product demand must be expressed in a usual measurement unit as like: production hours or plant hours.

The aggregate plan should also be coordinated along with the plans of the marketing and sales departments. Since the aggregate production plan comprises products such are now in production, this must also know the current and future inventory levels of such products and their component parts. Since new products currently being enhanced will also be comprises in the aggregate plan, the marketing promotions and plans for presents products and a new products should be reconciled against the entirety capacity resources available to the company.