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Introduction to

Production Planning
The role of hierarchical production planning
in modern corporations:
An MRP-based “push” framework
(borrowed from Heizer and Render)
Production Planning through
Time-based Decomposition
Corporate Strategy

Aggregate Unit Aggregate Planning


Demand (Plan. Hor.: ½-2 years, Time Unit: 1 month)

Capacity and Aggregate Production Plans

End Item (SKU) Master Production Scheduling


Demand (Plan. Hor.: a few months, Time Unit: 1 week)

SKU-level Production Plans

Manufacturing Materials Requirement Planning


and Procurement (Plan. Hor.: a few months, Time Unit: 1 week)
lead times
Component Production lots and due dates

Part process Shop floor-level Production Control


plans (Plan. Hor.: a day or a shift, Time Unit: real-time)
A CONWIP-based “pull” framework
(borrowed from Hopp & Spearman)
Reading Assignment
This part of the course is based on
– Chapters 3-5 and
– Chapter 13-16
of your textbook, plus on
– any other material reported or quoted in class.

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