PPT-Aggregate Planning

Operations Management Dr Ron Lembke Learning Objectives Describe planning Distinguish the types of plans Define aggregate scheduling Relate aggregate scheduling to the overall planning process. Spring 2011. Dr. Gary Gaukler. Introduction to Aggregate Planning. Goal: To plan gross work force levels and set firm-wide production . plans, based on predicted demand for aggregate units.. . Hierarchy of Planning . 29. McGraw-Hill/Irwin. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.. Aggregate Demand. Real GDP desired at each price level. Inverse relationship. Real balances effect. Spring 2011. Dr. Gary Gaukler. Two-equation Smoothing Model. Add linear trend:. Assume . D. t. = . m. + t . G. + . e. t. . . S. t. = . a. . D. t. + (1-. a. ) [. S. t-1. + 1 . G. t-1. ],. Aggregate expenditure line. Real GDP demanded. Changes in aggregate expenditure. Simple spending multiplier. Changes in the price level. Aggregate demand curve. Components of aggregate expenditure (AE). 12. McGraw-Hill/Irwin. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.. Aggregate Demand. Real GDP desired at each price level. Inverse relationship. Real balances effect. 1. Chapter 13 –. Aggregate . Planning. Operations Management. by. R. Dan Reid & Nada R. Sanders. 4th Edition © Wiley 2010. © Wiley 2010. 2. Learning Objectives. Explain business planning. Chapter 11. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.. Chapter 11: Learning Objectives. Dr. Ron Lembke. Learning Objectives. Describe planning. Distinguish the types of plans. Define aggregate scheduling. Relate aggregate scheduling to the overall planning process. Explain aggregate scheduling options. Today:. Aggregate demand. Why is it downward sloping?. Factors that affect the aggregate demand. Aggregate supply. Long-run aggregate supply. Short-run aggregate supply. Why is it upward sloping?. Factors that affect the short-run aggregate supply. Chapter 11: Learning Objectives. You should be able to:. Explain what aggregate planning is and how it is useful. Identify the variables decision makers have to work with in aggregate planning and some of the possible strategies they can use. Chapter 11. McGraw-Hill/Irwin. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.. Chapter 11: Learning Objectives. You should be able to:. Explain what aggregate planning is and how it is useful. Day 1. Q1: During the Great Depression we saw a rise in unemployment and deflation. In the recession of 1979-1982 a rise in unemployment but inflation. Why?. Q2: What is stagflation?. Aggregate Supply and Aggregate Demand. AD - The Model. PL. RGDP. AD. PL = Price Level. ALL prices in the economy. Real Gross Domestic Product = Dollar value of ALL domestically produced final goods and services adjusted for inflation. AD = Aggregate demand. The total amount of goods and services people will purchase at ALL price levels. Has the same components as GDP.. LO19–1: Understand what sales and operations planning is and how it coordinates manufacturing, logistics, service, and marketing plans.. LO19–2: Construct and evaluate aggregate plans that employ different strategies for meeting demand..