OpEx-SCM Fundamentals – Aggregate Planning

Aggregate Planning for Supply Chains
The source, titled “OpEx – SCM Funda3 Planning.pdf” by Vishnu Rayapeddi, provides a comprehensive overview of aggregate planning within supply chain management. It outlines the requirements, tasks, responsibilities, and relationships involved in this crucial planning process, which typically spans 3 to 18 months. The document details various aggregate planning goals such as meeting demand and minimising costs, and explores different pure strategies including adjusting capacity options (e.g., inventory levels, workforce size, subcontracting) and demand options (e.g., influencing demand, backordering). It further presents production strategies like chase, level, subcontracting, and hybrid approaches, along with their respective advantages and disadvantages, before discussing aggregate planning methods such as graphical techniques and mathematical models. Finally, the source touches upon controlling labour costs in service firms and the concept of yield management