A Presentation by JYYOTHEES MV ASSISTANT PROFESSOR FACULTY OF MANAGEMENT

AGGREGATE PLANNING Introduction• A big picture of planning is called aggregate planning.• It involves planning the best quality during 6 to 18

months.• While strategic planning deals with long range

operations of factices and resources.• Aggregate planning deals with developing way to utilize

those facilities and resources.

Meaning and definition of aggregate planning

Meaning : The aggregate plan generally contain

targeted sales fore casts, production levels , inventory levels, and customer back logs.Type of medium range capacity planning that typically covers a 3 to 18 months.

Aggregate planning

Aggregate planning

DistributionAnd

Marketing AccountsAnd

finance

Human resources

engineering

materials

operators

Objectives of aggregate planning

• Minimize cost.• Maximize profit.• Maximize customer service.• Minimize inventory investment.• Minimize changes in production rate.• Minimize utilization of plant and equipment.

Aggregate production plan

Aggregate production plan

input

Strategic objective

Company policies

Financial constraints

Unit sub constructs

Inventory levelsProduction rate

Size of work force

Demand fore cast

Out put

Capacity constraints

Thank

you