Arlen Kusuma A

TOM / 74 INT

AGGREGATE PLANNING

AGGREGATE PLANNING

Aggregate planning means a plan that includes forecast levels for families of products of
finished goods, inventory, shortages, and changes in the workforce. Which mean, one of the
tasks of SOP is to determine which plans are feasible in the coming months and which are not.
Any limitations, both within the firm and in the supply chain, must be reflected in an
intermediate plan that brings day-to-day
sales and operational realities together.

On the left side we can see the

input of the production planning in
aggregate planning process, which consists
of external and internal.

On the external side we can break

that down in to 3 main blocks which
consist of demand, capacity, and economic
conditions. Demand comes from the
market itself, while capacity and economic
conditions may come from outside of the
market for example there are inflation and
new policy that regulate a free market trades.

On the internal side we can break that down in to 3 main blocks which consist of
inventory, production, and workforce. The inventory comes from what do the firms have within
its storage, production and workforce within the firms capability to generates an output, either
goods or services.

How about the method to achieve good aggregate planning ? We introduce techniques
that operations manager uses to develop aggregate planning.

1. Graphical Methods  are popular because they are easy to understand

and use. These plan work with few variables at a time to allow planners to compare
projected demand with existing capacity
2. Mathematical Approaches  when an aggregate planning problem is viewed
as one of allocating operating capacity to meet forecast demand, it can be formulated
in a linear programming format.