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Supply Chain Aggregate Planning
Rating: 4.4 out of 5(34 ratings)
65 students

Supply Chain Aggregate Planning

a process where management regularly meet and review projections for demand, supply, and the resulting financial impact
Last updated 2/2024
English
English [Auto],

What you'll learn

  • How to Connect Sales to Operations
  • Aggregate Planning
  • Aggregate Planning Model Formation
  • Spreadsheet Formulation & Solution
  • Planning Scenarios
  • Fundamentals of Connecting Sales & Operations
  • Adding Demand Levers
  • Monthly S&OP Process

Course content

1 section10 lectures1h 19m total length
  • Introduction1:35

    Explore supply chain aggregate planning and sop with long-horizon, predictive analysis linking sales, marketing, and operations. Learn to form models, build spreadsheets, and plan scenarios for practical workshops.

  • Connecting Sales to Operations6:07

    Connect sales and operations through an integrated sales and operations planning process. Learn to align demand and supply using master production schedules and aggregate planning models.

  • Aggregate Planning7:17

    Explain aggregate planning over a 3 to 18 month horizon, using demand forecasts and aggregated volume to optimize production, inventory, and workforce within time fences for maximum profit.

  • Aggregate Planning Model Formation10:30

    Formulate an aggregate planning model as a linear program with variables for hires, production, overtime, back orders, and outsourcing, and minimize cost under production capacity, overtime, workforce, and inventory constraints.

  • Spreadsheet Formulation & Solution12:39

    Formulate and solve the Darville aggregate planning problem in a spreadsheet, balancing material, inventory, backlog, hiring, firing, and outsourcing to meet seasonal demand with a demand-chasing production strategy.

  • Planning Scenarios10:00

    Explore four planning scenarios in supply chain aggregate planning, showing how costs of hiring, firing, overtime, outsourcing, and backlog drive a cheese vs. level protection strategy.

  • Fundamentals of Connecting Sales & Operations6:46

    Explore how sales and operations connect by balancing supply and demand, aligning capacity and inventory with demand levers, and applying promotions and pricing to shape buying patterns.

  • Adding Demand Levers12:50

    Add demand levers in supply chain aggregate planning through pricing and promotions, use elasticity to estimate demand shifts, and optimize profit by aligning revenue, costs, and operations.

  • Monthly S&OP Process9:14

    The monthly sales and operations planning process aligns demand and supply through a structured, repeatable cycle driven by cross-functional collaboration, top-level buy-in, and bottom-level decision authority.

  • Key Take Aways2:36

    Connect the sales and operational teams to align information flow from production to the customer-facing side, and balance supply and demand with a 3–8 month planning horizon and time fencing.

Requirements

  • Have a keen and curious mind that's all
  • There are no prerequisites but it is recommended to do previous modules to build a better understanding

Description

In this course, we are going to talk more about the information flow. We're going to tie it into the physical flow for the design. So what we're going to talk about is the aggregate planning process, and then also distribution channels. So the aggregate planning process, we will bring everything together we've talked about the last several modules , and what we're going to do is really continue in the connection between your supplier and your customer. So the question is how do you plan for those activities? Now you also have some customer relationship management systems, helps you coordinate with your customer. And then, we talk about these integrated supply chain  management systems that help you plan your production, how you move things, and where you store things. So when we talked about this, we looked at, first, master planning schedule. And so when you do the master planning schedule you're really coming up with your production plan, and for that you're going to use the MRP. Now, where those fit in the planning cycle are appeared within three months. So what you're doing here is planning up to three months out, and that's a pretty typical, 12 weeks. And so you're planning your production.

The next thing we're going to look at though is what's known as aggregate planning, and this aggregate planning is actually over a much longer time frame, And usually, it's 3 to 18 months out. So you're going further into the future. So your date is going to be a little less actual rates. It's going to more predictive, or estimates, and you're going to be looking at a wider swath of the company. You're going to really be looking at everything here to try to plan. Looking at how your customer will react, the promotions you'll run, how that affects production, how affects your sourcing. So we're going to tie those all together with aggregate planning. And we'll also talk about something called Sales and Operations Planning, S&OP. And so what S&P does, it ties together both sides of the company, the sales or the marketing side, with the operations, sourcing, and supply chain side. How do you get those things together so that your demand planning matches your capabilities of production? So we'll continue on in this and focus heavily on S&OP and aggregate planning. And again, what's happening here is, remember, the physical flow goes this way through your network, from supplier to your customer, and we're seeing that the information flow really flows this way. Because the demand dictates what you manufacture, and what you procure, and so forth.


Enjoy your course!

Who this course is for:

  • Beginners in Supply Chain
  • Supply Chain Professionals
  • Students
  • Consultants
  • Management Consultants
  • Business Analysts
  • Supply Chain Managers
  • Business owners
  • Demand And Supply Planners
  • Anyone from beginners & intermediate students who loves to learn step by step Demand(Sales Forecasting) Planning