Collaborative aggregate planning in Supply Chain
Table of content
Project summary
1. INTRODUCTION
Shared resources among companies with similar work process is an effective way to maximize profit. However, boundaries are required because this a
angement could be very complicated. Collaborative aggregate planning is a tool that effectively aid shared resources among companies; it helps identify resources that can be shared and the extent of the sharing. Aggregate planning is the act of creating a baseline schedule that outlines how an organization will operate over a specific time frame, often lasting between three and eighteen months. It enables planner to evaluate and reduce risks, establish more effective systems, and approach inventory and staffing with clear eyes. Data about client demand and capacity will be incorporated into the strategy from a variety of sources; these provides clear understanding of what the future holds, allowing planners to make informed plans. Information about demand forecast, sales and production history, inventory, and costumers’ backlogs are analyzed to determine whether the organization typically has periods of excess or insufficient capacity, project future periods of peak sales, and evaluate whether their personnel levels have historically or cu
ently been adequate. Aggregate planning can help organizations in manufacturing and production environment make informed decisions. The plan covers all the production tasks required to ensure continuous production and aids companies in allocating resources effectively regardless of external factors like client demand and supply chain issues (Ave
uch, XXXXXXXXXXBusiness decisions such as production rate, workforce, inventory, demand, subcontracting, backlog, machine capacity, and overtime are the integral parts of operational planning parameters over a specified time horizon. To optimize supply chain performance, all supply chain levels should be integrated together on an aggregate plan. Supply chain problems can become very serious as a result of poor aggregate planning. Businesses with poor aggregate planning may have too much inventory taking up warehouse space or overproduce, wasting resources and workers. On the other hand, they can discover that they are unable to satisfy customer demand (Ave
uch, 2022).
Aggregate planning is a powerful tool in supply chain planning, however, it has some limitations and constraints which can derail the strategy. Constraints such as time range for specific plans and assumptions that some aspects are indeed certain can make this technique difficult. Aggregate planning is designed for three to eighteen weeks, which implies that it has to be constantly reviewed to be efficient; also, the assumptions that some factors are relatively certain, which can change at any given time is difficult to control (Ave
uch, XXXXXXXXXXInformation needed, known as the input, and expected outcome, known as output are the two aspects of aggregate planning.
This paper will discuss the inputs and outputs in aggregate planning, basic tradeoffs in aggregate planning, strategies in aggregate planning, aggregate planning using linear programing and excel, and the role of software in aggregate planning.
Inputs in aggregate planning
Outputs in aggregate planning
Tradeoffs in aggregate planning
Strategies in aggregate planning
2. Problem Description
Two logistics companies a planning to share resources (warehouses, personals, trucks, equipment) to reduce cost and maximize profit. A linear program model detailing the shared resources a
angement using collaborative aggregate planning is required.
3. Objective
Collaborative aggregate planning aims to reduce operational expenses by matching production capacity with demand in line with resource sharing a
angement. A collaborative aggregate plan details what resources can be shared, as well as when they should be shared in order to keep costs down.
4. Benefits and Deliverables
5. Literature Review
6. Project Plan
7. Methodology
The methodology the adequately illustrate the modeling of aggregate planning for the purpose of this paper will focus on the use of linear programing and excel solver.
8. Resources
· Linear program model
· Excel solve
Role of software in aggregate planning
9. Expected Outcome
10. Result
11. Conclusion:
12. References
Chopra, S XXXXXXXXXXNetwork Desing in Supply Chain. In S. Chopra, Supply chain management: Strategy, planning, and operation. Pearson.