WHAT IS PRODUCTION
PLANNING?
Production planning is simply a group of processes that start in market and ends in market in a cycle manner.
MARKET
Planning for future in most manufacturing cases depends on past history (MARKET).
First step of planning is to forecast the demand for future. If the demand for future is known, every thing in the factory can be adjusted to reach the demand.
Demand forecasting is the (MARKET) state in the last recent period represented by data, then the data is plotted and appropriate forecasting method is applied according to it.
SOME FORECASTING METHODS:FORECASTING METHODPAST DATA SHAPEMOVING AVERAGE
ORSTATIONARYEXPONENTIAL SMOOTHINGDOUBLE EXPONENTIAL SMOOTHINGTRENDSEASONAL FACTORSSEASONAL
PLAN
After demand forecasting, the objective ( plan aim ) is to meet that demand with minimum costs ( holding, order and penalty).
Definition of costs:DEFINITIONCOSTCOST OF HAVING EXTRA RAW MATERIALS OR PRODUCTSHOLDING COSTCOST OF MAKING AN ORDERORDER COSTCOST OF HAVING LESS RAW MATERIALS OR PRODUCTS THAN THE NEEDEDPENALTY COST
To get the minimum costs, EOQ and EPQ have to be founded.
EPQEOQTHE OPTIMAL QUANTITY OF PRODUCTIONS TO GET MINIMUM COSTSTHE OPTIMAL QUANTITY OF RAW MATERIAL TO GET MINIMUM COSTS
INVENTORIES
Factories usually have three types of inventories: raw material, work in process and fish product inventory. The optimal plan has to be applied to all inventories.
RAW MATERIAL INVENTORY
According to the conditions of raw material inventory, appropriate EOQ model is applied, and the same thing for finish product inventory. For work in process inventory aggregate planning can find the optimal plan.
SOME EOQ MODELS:VARIABLES DEFINITIONMODELCONDITIONSK:fixed order cost
: demand rate / time unit
h: holding cost/ unitEOQ =GENERAL MODEL: average total cost
: area taken by raw material
: EOQ
W: total inventory areaNONLINEAR MODEL:
min
s.t.
multiple RAW MATERIALS AND LIMTD AREADi: demand in period i
Ii: inventory carried during period i
Qi: order size in period i
Ki : order setup cost
h: holding cost/ unit
M: big number
10* max demandLINEAR MODEL:
Min
s.t.
FIXED ORDER COST IS GREATER THAN INVENTORY HOLDING COST + LARGE INVENTORY AREA discount model
( PROCESS )OFFER ON RAW MATERIAL
WORK IN PROCESS INVENTORY
Applying aggregate planning model, gives the optimal solution for this inventory.
Min
s.t.
Where
: cost of hiring one worker
: cost of lay off
: cost of holding one unit for one period
: cost of production one unit on overtime
: Idle cost per unit
: number of production day per t
K: number of aggregate unit produced by one worker in one day
: Initial inventory at the start of T
: Initial number of worker
: forecasted demand
FINISH PRODUCT INVENTORY
The general model:
EPQ =
Where:
K: fixed order cost
: demand rate / time unit
h: holding cost/ unit
p: production rate/unit
MARKET
After taking data form market, optimal plan (MINIMUM COSTS) for inventories is made and applied, the products are taken to the market. That is simply what does production planning mean.
role players in production planning
role players in production planning
Event planning and production involves planning ceremonies, parties, concerts, or conventions. There is no formal education requirements for an event planning and production job.
Daniel Sipper has written: 'Production' -- subject(s): Inventory control, Production planning, Production control 'Production: Planning, Control and Integration'
Production planning and control is used in the manufacturing industry. As the name suggests, it is used to plan and control the process of production.
Production planning is the administrating process within a manufacturing business. The characteristics of a production planning involve having the staff, raw materials, and other items needed to run the manufacturing business.
Production planning ensures that the business has the resources needed to carry out production. If the business doesn't have the resources it needs then the facilities will experience a stoppage.
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Marc Salomon has written: 'Deterministic lotsizing models for production planning' -- subject(s): Mathematical models, Production planning, Production scheduling
Planning is one of the techniques through which you can achieve your goal.
Production Planning
Production planning and control is used in the manufacturing industry. As the name suggests, it is used to plan and control the process of production.