STEPS IN AGGREGATE CAPACITY PLANNING

1.Prepare the sales forecast for each product that indicates the quantities to be sold in each time period 2. Sum up the individual product or service forecast into one aggregate demand for the factory. 3. Transform the aggregate demand for each time period into labour, material, machines & other elements of production capacity to satisfy aggregate demand.

4. Develop alternatives resource schemes for supplying the necessary production capacity to supprt the cumulative aggregate demand. 5. Select the capacity plan from among the alternatives considered that satisfies aggregate demand & best meets the objective of the organisation.

FLOW CHART OF AGGREGATE PLAN
Market environment Forecast & customer order Aggregate production plan Master production schedule Material Requirements Capacity Requirement Resource Base Technology Capacity ( Facilities, material , labour)

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