Chapter 13: Problem 10

One of the functions of sequencing and scheduling is to make effective use of capacity by balancing setups and due dates. This implies that actual capacity is not known until a schedule is developed. But both the capacity/facility planning and aggregate planning functions rely on capacity data. How can they do this in the absence of a schedule (i.e., how can they be done at a higher level in the hierarchy than sequencing or scheduling)?

Short Answer

Expert verified

Capacity planning and aggregate planning functions estimate capacity without requiring a precise schedule by relying on forecasting methods and historical data. This allows them to evaluate trends and patterns in demand and resource requirements, enabling them to focus on long-term and mid-term planning rather than specific schedules.

Step by step solution

1. Introduction to capacity planning and aggregate planning

Capacity planning refers to the process of evaluating the resources required to meet the production demand. This includes determining the number of employees and facility requirements. Aggregate planning is a strategic planning process that aims to balance the production demand and resource capacity, while considering the costs associated with meeting demand.

2. Sequencing and scheduling

Sequencing refers to the arrangement of tasks in a specific order to optimize the use of resources. Scheduling is the allocation of resources to tasks over a given period to achieve the desired production targets within the constraints of resources, such as labor, machines, and facilities.

3. Role of capacity planning and aggregate planning without a schedule

Capacity planning and aggregate planning occur at a higher level in the decision-making process as they focus on long-term and mid-term planning. They rely on forecasting methods and historical data, rather than specific schedules, to estimate demand and resource requirements. This gives them the ability to estimate capacity based on trends and patterns rather than requiring a precise schedule.

4. The hierarchical relationship

The relationship between capacity/facility planning, aggregate planning, and sequencing/scheduling can be visualized as hierarchical. Capacity/facility planning takes place at the highest level, followed by aggregate planning, and finally, sequencing and scheduling. Each of these stages in the process works in conjunction with the others, but maintains its focus on a specific aspect of the production process. For example, capacity/facility planning focuses on long-term resource requirements, aggregate planning focuses on balancing medium-term demand and capacity, while sequencing and scheduling are concerned with short-term resource allocation and optimization.

5. Conclusion

Capacity planning and aggregate planning functions can be performed at a higher hierarchical level than sequencing or scheduling by relying on forecasting and historical data, instead of actual capacity data from a specific schedule. This enables them to address long-term and medium-term resource requirements while maintaining the flexibility needed to adapt and respond to changes in demand. Once these planning functions establish a framework for capacity management, sequencing and scheduling can then use this foundation to optimize short-term resource allocation and production targets.

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Short Answer

Step by step solution

1. Introduction to capacity planning and aggregate planning

2. Sequencing and scheduling

3. Role of capacity planning and aggregate planning without a schedule

4. The hierarchical relationship

5. Conclusion

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