This case study illustrates how to create aggregate plans for the production processes of a company.
Planning how a company uses its resources can be done in several ways depending upon the type of company it is and the production processes involved. The case study provides essential guidelines on how to create a successful aggregate plan through analysing stock levels, production rate and customer demand.
Aimed at students on operations management courses, this case study analyses how companies can sell a range of products of the same kind, such as screwdrivers. The authors assess how the same processes and equipment are used to make these products, no matter what size the items are. Thus, all the products can be scheduled together (aggregated) when they are being pushed through the production system. This improves the company's processes.
Mike Simpson and Andrea Genovese have explained the role of stocks in the organization, their effect on break-even points and strategies for managing them to meet customers' needs. In this case study they present how to transform forecast demand and capacity plans into an aggregate plan, and consider key production questions and issues. The case study also includes graphs for measuring demand against production rate and guides the reader through the calculations and analysis process through a question and answer format.
Mike Simpson is a Senior Lecturer in Operations Management on the MBA programme and Operations Management and Supply Chain Management on the MSc programmes at The University of Sheffield Management School.
Dr Andrea Genovese is a Lecturer in Logistics and Supply Chain Management at the Management School of the University of Sheffield. He is also a member of the Logistics and Supply Chain Management (LSCM) Research Centre and Centre for Environment Energy and Sustainability (CEES).