AGGREGATE PLANNING ACROSS THE ORGANIZATION
Aggregate planning, master production scheduling, and rough-cut capacity affect functional areas throughout an organization. The MPS is a basis for communication among those functional areas. Let's look at how each area is affected.
Accounting is affected because the aggregate plan details the resources needed by operations during the next 12 to 18 months. Accounting uses this information to project cash flows, calculate the capital needed to support operations, and project earnings. It also sets a benchmark for measuring the effectiveness of operations.
Marketing is involved because the aggregate plan supports the marketing plan. Marketing must know whether operations can provide the necessary output at a price that allows marketing to achieve its targeted profit margins. Furthermore, the aggregate plan gives marketing insight into operations’ goals and activities for the year.
Information systems (IS) maintains the databases that support demand forecasts and other such information used to develop the aggregate plan.
Purchasing calculates ...
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