ABSTRACT
Since available resources for production, such as raw materials, machines, labour forces, funds, and so on are limited, it is desirable to allocate effectively and utilise those production resources to determine optimal kinds and quantities of products to manufacture. This is aggregate production planning in a specified time period. Material requirements planning (MRP), and manufacturing resource planning are widely used systematic procedures using computer- based software for production planning based upon the parts explosion. In general, the capacity of production facilities is limited; its limit is the effective work time multiplied by the number of machines, expressed in terms of machine- hours, or, in the case of operative workers, man-hours. Long-term production planning establishes a production plan covering the future, usually several years, contrary to short-term production planning, which deals with a production plan for a single period.
