It is a plan for the future production, in which the facilities needed are determined and arranged
Determination of the required product mix and factory load to satisfy customers needs.
Matching the required level of production to the existing resources.
Scheduling and choosing the actual work to be started in the manufacturing facility
Setting up and delivering production orders to production facilities
In manufacturing, a planning horizon is a future time period during which departments that support production will plan production work and determine material requirements
Provide
Should take into account
resource availability
knowledge of future demand
Missing part
Material requiared
Manufacturing operations and sequances
Preparation for control
Cost of the product
Scrap factors
Lot sizes
Decentralised despatching:
All orders are ussued to the foreman or dispatch clerk of the department. Makes control more complicated.
Long – range planning:
Facility planning, capital investment, location planning
Production planning is done at three different time dependent levels
Challenges for planning
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