Types of Planning
•Capacity plans, which make sure there is enough capacity to meet long-term demand.
•Aggregate plans, which give summaries of the work done in related activities, typically by monthat each location.
•Master schedules, which show a detailed timetable for all activities, typically by week.
•Short-term schedules, which show detailed timetables for jobs and resources, typically by day.
Capacity Planning: Definitions
•The capacityof an operation is its maximum throughput in a specified time
•The capacity of a supply chain sets the maximum amount of product that can be delivered to final customers in a given time.
•Designed capacity is the maximum possible throughput in ideal conditions.
•Effective capacity is the maximum realistic throughput in normal conditions.
•Actual throughput is normally lower than effective capacity.
Bottlenecks
•Not all parts of a supply chain have the same capacity.
•There must be some part that limits overall throughput, and this forms a bottleneck.