Code |
SNP-MOD-0003 |
Title |
Level loading vs load balancing |
Type |
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Download |
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Level loading vs load balancing
In certain supply chains, a hot topic is level loading, in others, it is load balancing. Then there are supply chains where both the methodologies are actual and important. What is the difference between level loading and load balancing? Both of the methodologies are applied at a tactical planning level, but they are driven by different constraint elements.
Who
These actions are generally executed by the Supply Network Planning team with support or interaction from the local supply chain, operations, and sales force.
What
They are two planning methodologies used to allocate production in different locations or time slots.
How
These actions can be performed by having a good overview of the entire supply network in terms of capacity and costs. Production orders are allocated in different locations or time slots.
When
When the supply network planners notice the capacity is full and actions are necessary to avoid stock out.
Why
Level loading and Load balancing are actions performed to prevent stock out.