The uncertain nature of the customer demand needs to take into consideration by generating the production plan and in particular the production quantities, to meet uncertain customer demand in the best way possible and maximize the profit, by minimizing production costs. Aggregate planning is a process by which a company decides about its ideal levels of capacity, production, inventory, stock-out situations, pricing, subcontracting, etc. Production planning is the correct placement of production orders concerning the place, or region, of production, and time scheduling and sequencing of production orders. The parameters are usually production rate, workforce, overtime, machine capacity level, subcontracting, backlog, and inventory on hand. The amount of overtime production planned is a parameter for aggregate production planning. Production planning for fashion apparel products has to cope with demand uncertainties. Collaborative forecasts created by various enterprises are an important input in aggregate supply chain planning. However, at the time of generating the production plan, the predicted customer demands are largely uncertain.
Keywords: Aggregate supply chain planning, demand, forecast, apparel supply chain.
Supply Chain Planning (SCP) is a strategy for maintaining trade-offs between the supply of and the demand for goods and services. SCP is one of the primary elements of supply chain management, while the other is supply chain execution. The aggregate planning methods are used to decide about production, outsourcing, and backlogs in a supply chain.
A company’s supply chain
Supply chain planning covers many aspects of a company’s overall supply chain. Use of tools or inventory, sales, or production is included in SCP. Precise planning helps just-in-time inventory management requirements easier. A multi-screen dashboard can make the business process transparent using specific interface strategies. These things help supply chain managers save money and allow them to work efficiently.