Research and write a short paper (two pages maximum) describing how organizations use aggregate planning options in
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Research and write a short paper (two pages maximum) describing how organizations use aggregate planning options in Exhibit 14.3.
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EXHIBIT 14.3 Example Aggregate Planning Variables and Revenue/Cost Implications Aggregate Planning Decision Options Demand Management Pricing strategies Promotions and advertising Production Rate Overtime Undertime Subcontracting Workforce Hiring Layoffs . Full- and part-time labor mix Inventory Anticipation (build) inventories Allow stockouts Plan for backorders Facilities, Equipment, and Transportation . Open/closed facilities and hours Resource utilization Carbon emissions Mode (truck, rail, ship, air) Capacity and resource utilization Revenue/Cost Implications Increased revenue and lower unit costs Economies of scale Higher labor costs and premiums Idle time/lost opportunity costs Overhead costs and some loss of control Acquisition and training costs Separation costs Labor cost and productivity changes Inventory-carrying costs Lost sales (revenue) and customer loyalty costs Backorder costs and customer waiting costs Variable and fixed costs Speed and reliability of service and delivery Low-to high-utilization impact on unit costs Inbound and outbound costs per mode Number of full or partial loads
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Answer Title Leveraging Aggregate Planning Options for Effective Organizational Management Introduction Aggregate planning is a critical process that enables organizations to align their resources and ...View the full answer
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