THE SUPPLY CHAIN LINK
Aggregate planning assures the necessary resources to satisfy an organization's objectives (profit, customer service, inventory investment, etc.). It determines both the output rate and the workforce size. These resources are based on product demand and reflect the customer service objectives of the company. The master production schedule is shared with all members of the supply chain so that everyone knows expected completion dates and availability of different products. Members of the chain also know when demand differs from the plan as well as any problems encountered by operations that affect the availability quantity or date for different products. This allows members of the chain to respond to potential problems and not make unsustainable delivery commitments. The master production schedule is the primary means of communication within the supply chain.
Get Operations Management: An Integrated Approach, 5th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
