Aggregate Production Planning: Aggsiml

Abstract

This note provides instructions for using the Excel model AGGSIML to evaluate the incremental costs of a trial production plan.

Excerpt

UVA-OM-1009

Rev. Oct. 15, 2012

AGGREGATE PRODUCTION PLANNING: AGGSIML

AGGSIML is a spreadsheet model for economically evaluating aggregate production plans. For a given company situation, the model allows the user to try alternative plans for meeting demand requirements and to determine the costs of these plans.

To use the model, certain data, including forecast demand and buffer inventory requirements, must be input to the spreadsheet. The user then enters a plan for meeting these requirements. There are several alternative ways for meeting the demand and buffer inventory requirements:

· Change the size of the work force (by hiring or laying off employees)

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Keywords: aggregate planning, incremental costs