Aggregate Planning

Aggregate Planning - Aggregate Planning Jan 150,000 Quarter...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Aggregate Planning Quarter 1 Jan Feb Mar 150,000 120,000 110,000 Quarter 2 Apr May Jun 100,000 130,000 150,000 Quarter 3 Jul Aug Sep 180,000 150,000 140,000
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Capacity Options þ Changing inventory levels : Increase inventory in low demand periods to meet high demand in the future þ Increases costs associated with storage, insurance, handling, obsolescence, and capital investment þ Shortages can mean lost sales due to long lead times and poor customer service
Background image of page 2
3 Capacity Options þ Varying workforce size by hiring or layoffs : Match production rate to demand þ Training and separation costs for hiring and laying off workers þ New workers may have lower productivity þ Laying off workers may lower morale and productivity
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Capacity Options þ Varying production rate through overtime or idle time þ Allows constant workforce þ May be difficult to meet large increases in demand þ Overtime can be costly and may drive down productivity þ Absorbing idle time may be difficult
Background image of page 4
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/20/2012 for the course MGT 3200 taught by Professor Moodie during the Spring '08 term at Kennesaw.

Page1 / 17

Aggregate Planning - Aggregate Planning Jan 150,000 Quarter...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online