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  • Demand Management: Production Planning

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    Fayiza Qureshi
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    The document describes a manufacturing planning and control (MPC) system or manufacturing resource planning (MRP II) system. The system links together four main planning functions: (1) demand management which involves forecasting demand and confirmed orders, (2) production planning which prepares a production plan using demand forecasts and available capacity, (3) the master production schedule which aggregates output levels, and (4) resource planning which relates to the company's business plan. Accurate forecasting is essential for the system to effectively assess risk and support decision making.

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    Demand Planning

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    SCM

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    The document describes a manufacturing planning and control (MPC) system or manufacturing resource planning (MRP II) system. The system links together four main planning functions: (1) demand management which involves forecasting demand and confirmed orders, (2) production planning which prepares a production plan using demand forecasts and available capacity, (3) the master production schedule which aggregates output levels, and (4) resource planning which relates to the company's business plan. Accurate forecasting is essential for the system to effectively assess risk and support decision making.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views1 page

    Demand Management: Production Planning

    Uploaded by

    Fayiza Qureshi
    The document describes a manufacturing planning and control (MPC) system or manufacturing resource planning (MRP II) system. The system links together four main planning functions: (1) demand management which involves forecasting demand and confirmed orders, (2) production planning which prepares a production plan using demand forecasts and available capacity, (3) the master production schedule which aggregates output levels, and (4) resource planning which relates to the company's business plan. Accurate forecasting is essential for the system to effectively assess risk and support decision making.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    (MRP) - material requirement planning

    Demand
    (MPS) - master production schedule
    Management
    1

    manufacturing planning and control (MPC) system


    B Production planning or
    using 1,2 & 3 prepares production plan, which
    sets the aggregate output levels of the manufacturing resource
    network of planning systems A,B,C &planning
    D linked (MRP II) system
    company together
    A
    Demand management
    Relating 1 & 2
    C Company’s D Resource plan
    1 2 3 business plan

    Forecasting of demand Confirmed customer Available Plant


    orders and backlogging Capacity
    • Intrinsic technique <Historical data> decisions
    • Extrinsic technique <Customer Surveys>
     measurement and control of forecast error are
    essential for assessment of risk in decision
    making

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