STEPS IN AGGREGATE

CAPACITY PLANNING
1.Prepare the sales forecast for each
product that indicates the quantities to be sold in
each time period
2. Sum up the individual product or service forecast
into one aggregate demand for the factory.
3. Transform the aggregate demand for each time
period into labour, material, machines & other
elements of production capacity to satisfy aggregate
demand.
4. Develop alternatives resource schemes
for supplying the necessary production
capacity to supprt the cumulative
aggregate demand.
5. Select the capacity plan from among the
alternatives considered that satisfies
aggregate demand & best meets the
objective of the organisation.
 FLOW CHART OF AGGREGATE
PLAN
Market Resource Base
environment Technology
Forecast & customer Capacity ( Facilities,
order material , labour)

Aggregate
production plan

Master production
schedule
Material Capacity
Requirements Requirement