403 exam 2

403 exam 2 - 403: Exam 2 Aggregate planning Details the...

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403: Exam 2 Aggregate planning o Details the aggregate production rate and the size of the workforce, which enables planners to determine the amount of inventory to be held, the amount of overtime authorized, or firing of employees; and back-ordering of customer orders 1. Operations planning hierarchy o Strategic (long range) Small number of decisions, critical long term impact o Tactical (medium range) Reasonable number of decisions, important medium range impact o Operational/executional (short term) Lots and lots of decisions, important immediate impact, less long term impact 2. Work force levels: the number of workers required for production (regular time and overtime) 3. Production rates: the number of units produced per time period and/or subcontracting 4. Inventory levels: the balance of unused units carried forward from the previous period 5. Backorder levels: the balance of unsatisfied orders carried forward from the previous period 6. Three planning strategies o Chase strategy Workforce levels are adjusted to match demand requirements over planning horizon; no inventory or backorders o Level strategy A constant work force is level maintained over planning horizon; inventory/demand backorders are built and dissipated o Mixed strategy Workforce levels are allowed to change and inventory/backorders can be used 7. Level Aggregate Plan: maintains a constant workforce and produces the same amount of product in each time period of the plan o Advantage- workforce stability o Disadvantage- buildup of inventory and/or possible poor customer service from extensive use of back orders
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8. Chase Aggregate Plan: produces exactly what is needed to satisfy the demand during
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This note was uploaded on 02/13/2012 for the course BUSI 403 taught by Professor Lu during the Fall '08 term at UNC.

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403 exam 2 - 403: Exam 2 Aggregate planning Details the...

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