Aggregate planning is described as a process of developing, analyzing, and maintaining a schedule...


Aggregate planning is described as a process of developing, analyzing, and maintaining a schedule of the overall operations for a supply chain. Is aggregate planning the best approach to use for evaluating supply chain performance, or is another one better?

Aggregate Planning In Production:

Aggregate planning which is fundamental to production is concerned with the quantity and the timing of producing products for a planning period ranging anywhere from three to eighteen months in advance. Four requirements are necessary for aggregate planning:

1. Must have a realistic system for measuring sales and output.

2. Must be able to forecast of demand for an interim planning period.

3. Must have a procedure in place for determining cost.

4. Must have a standard that incorporates forecasts and costs to make informed scheduling decisions.

Therefore, aggregate planning which is part of a larger production system is the method of balancing capacity and demand to minimize cost. Aggregate planning also provides companies with a valuable tool to help them obtain larger market shares in the world economy. It also allows companies to be flexible in response to changing consumer needs while still producing at minimal cost and exceptional quality levels which is integral for companies and operations managers in order to evaluate production efficiency.

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Evaluating the performance of an entire supply chain is a very intimidating and complex task. Due to its inherent complexity of the supply chain...

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Measuring Supply Chain Performance: Key Performance Indicators


Chapter 11 / Lesson 9

A functional supply chain is integral to successful product distribution. Explore key indicators used to measure supply chain performance, including efficient material storage and the measures taken to ensure proper manufacturing and fulfillment.

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