Aggregate organisational planning of sales, production and supportive logistics - for medium to large sized manufacturers and corporate logistics planners.
This program can
be used to plan desirable distribution rate of final products,
production quantities of final products, stock levels of final
products and raw materials/spares/sub-assemblies and the supply
plan for incoming goods, based on the sales forecast, where a
direct relationship (dependant demand) exists between one unit of
production and units of raw materials/spares/sub-assemblies.
You must obtain the following information on a monthly basis from
other sources within the organisation (Most of it will remain
relatively stable once you have obtained it):
Updated Sales forecast, stock balances as at previous month end,
production backlog, production capacities per product line, the
proportional relationship between a unit of final product and the
materials it is made up off , delivery periods of supplies.
You can also incorporate this program into another program to
make your existing system more comprehensive.
Sales Forecast:
The sales forecast is the essence of the whole game plan. It is
the starting point for all the other calculations. You have to
change it on a monthly basis to keep track of reality for the
whole forecasted period. The forecasted period must be longer
than 12 months to provide for backward scheduling of ordering
needs for 12 months.
Safety stock levels of final products:
The purpose of safety stock is to support sales, when production
falls behind sales due to disruptions, stoppages, maintenance,
lack of raw materials. You have to change the proportion of
safety stock (as a proportion of sales forecast)
according to your specific needs. Provision has been made to
alter the proportion in any particular month for seasonal trends.
You also have to quote the ending balance of each product as at
previous month end.
Production Plan:
The production plan is calculated to support sales and safety
stock. The idea is to produce for sales and any shortages in
safety stock and to catch up on any backlogs from the past. You
have to spread out any backlogs over any period to suit yourself.
Raw Materials/Spares:
Raw materials /spares needs and arrival plans are calculated to
support production and safety stock.
Summary:
Floating graphs are included.
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