International Journal for Business Case Studies

Balancing Production Capacity and Demand through Aggregate Production Planning (app): A Case study in Baghdad Company for soft Drinks, Baghdad, Iraq

*Ahmed I. Hussein
Department Of Technical Administration, Middle Technical University, Iraq

*Corresponding Author:
Ahmed I. Hussein
Department Of Technical Administration, Middle Technical University, Iraq
Email:poolyyx@outlook.com

Published on: 2019-02-25

Abstract

Based on the data witch researcher collected it from Production processes department in Baghdad Company for soft drinks, there were six kinds of soft drink products (Pepsi, Miranda, 7up, green apple, shani, and lemon). There were still shortages of production capacity in three products only (green apple, shani, lemon) in 2017. A company produced zero units at several times from the year 2017 for these limit products (3 only). To overcome this problem, the purpose of this research was to make Production planning & control consisting of: Aggregate production planning and forecasting demand by weighted moving average method in 2018. The tested values show how Baghdad Company for soft drinks can balancing between production capacity and demand of customers in the year 2018 through (first quarter only).

Keywords

Aggregate production planning; Production; Demand

Introduction

Capacity of production is the maximum rate of output of a process or a production system, managers are responsible for ensuring that the firm has the capacity to meet current and future demand .otherwise the organization will miss out on opportunities for growth and profits. Making adjustments to decrease capacity or to increase it. Capacity decisions related to process need to be made in light of the role the process plays within the organization and the supply chain as a whole, because changing the capacity of process will have an impact on other processes within the firm and across the chain.