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Lecture Production operations management: Lecture 21 - Osman Bin Saif

In this chapter, the following content will be discussed: Inventory fundamentals, aggregate inventory management, how company use their inventory, objectives of inventory management, relevant inventory cost, inventory function, types of inventory, material flow, functions of inventory, inventory cost, inventory turns. | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 21 1 Summary of Last Session Global Company Profile: Anheuser-Busch The Planning Process The Nature of Aggregate Planning Aggregate Planning Strategies Capacity Options Demand Options Mixing Options to Develop a Plan 2 2 Summary of Last Session (Contd.) Methods for Aggregate Planning Graphical Methods Mathematical Approaches Comparison of Aggregate Planning Methods 3 3 Agenda for this Session Case Study Frito Lays Methods for Aggregate Planning Graphical Methods Mathematical Approaches Comparison of Aggregate Planning Methods 4 4 Agenda for this Session (Contd.) Aggregate Planning in Services Restaurants Hospitals National Chains of Small Service Firms Miscellaneous Services Airline Industry Yield Management 5 5 Aggregate Planning at Frito-Lay More than three dozen brands, 15 brands sell more than $100 million annually, 7 sell over $1 billion Planning processes covers 3 to 18 months Unique processes and specially . | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 21 1 Summary of Last Session Global Company Profile: Anheuser-Busch The Planning Process The Nature of Aggregate Planning Aggregate Planning Strategies Capacity Options Demand Options Mixing Options to Develop a Plan 2 2 Summary of Last Session (Contd.) Methods for Aggregate Planning Graphical Methods Mathematical Approaches Comparison of Aggregate Planning Methods 3 3 Agenda for this Session Case Study Frito Lays Methods for Aggregate Planning Graphical Methods Mathematical Approaches Comparison of Aggregate Planning Methods 4 4 Agenda for this Session (Contd.) Aggregate Planning in Services Restaurants Hospitals National Chains of Small Service Firms Miscellaneous Services Airline Industry Yield Management 5 5 Aggregate Planning at Frito-Lay More than three dozen brands, 15 brands sell more than $100 million annually, 7 sell over $1 billion Planning processes covers 3 to 18 months Unique processes and specially designed equipment High fixed costs require high volumes and high utilization © 2014 Pearson Education, Inc. 6 6 Aggregate Planning at Frito-Lay Demand profile based on historical sales, forecasts, innovations, promotion, local demand data Match total demand to capacity, expansion plans, and costs Quarterly aggregate plan goes to 36 plants in 17 regions Each plant develops 4-week plan for product lines and production runs © 2014 Pearson Education, Inc. 7 7 Graphical Methods Popular techniques Easy to understand and use Trial-and-error approaches that do not guarantee an optimal solution Require only limited computations 8 8 Graphical Methods Determine the demand for each period Determine the capacity for regular time, overtime, and subcontracting each period Find labor costs, hiring and layoff costs, and inventory holding costs Consider company policy on workers and stock levels Develop alternative plans and examine their total costs 9 9 Roofing Supplier Example 1 Table 13.2 Month .