Chapter 21 Effective Production and Capacity Planning
An effective production and capacity planning process is an important prerequisite to scheduling. It may be helpful at this point to make a distinction between planning and scheduling. Planning is deciding which products to run, and in what quantities, during each time period. Scheduling is choosing the best sequence in which to make the products for each time period, in a way that set-up costs are minimized, without running out of stock or missing customer due dates.
The time periods used for planning depend on the products and the capability of the equipment. It should roughly correspond to the time required to cycle through the production of most products. ...
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