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ch13_outline - STUDY OUTLINE FOR CHAPTER 13 AGGREGATE...

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STUDY OUTLINE FOR CHAPTER 13- AGGREGATE PLANNING 1. What is aggregate planning? Aggregate planning is intermediate-range (tactical) capacity planning, usually covering 6 to 18 months for a group of similar products (aggregate would be how many cars to make opposed to how many of each model). - not in specifics, looking at bigger picture, planning for capacity for a group of similar products - how many cars to make vs. how many of each model to make - intermediate plans, employment, output Begin with 2. What is the purpose of aggregate planning? Achieving balance between capacity, demand, or both over the entire planning horizon. 3. List the demand options in aggregate planning. pricing promotion back orders new demand 4. List the capacity options in aggregate planning. 1) hire and layoff workers 2) overtime/slack time 3) part-time workers 4) inventories 5) subcontracting 5. List the main strategies for meeting uneven demand. 1) Maintain a level workforce 2) Maintain a steady output rate 3) Match demand period by period 4) Use a combination of decision variables 6. Name two important factors that influence choice of strategy.
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