12graphical aggregate planning methods while based on

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Unformatted text preview: he master production schedule (MPS) is produced by disaggregating the aggregate plan. 12. Graphical aggregate planning methods, while based on trial and error, are useful because they require only limited computations and usually lead to optimal solutions. 13. Limitations of the transportation method include that it does not work well when one attempts to include the effect of hiring and layoffs in the model. 14. Revenue (yield) management adds another set of decisions to the aggregate plan, to capacity planning, and to scheduling. However, of these revenue management issues, the aggregate plan may be the one least affected. Auto rental companies, airlines, and hotels now all vary “inventory” (autos, seats, rooms) and prices to reflect ways to maximize their yield (profit). Lead time (vacationers price shop more and are willing to do so earlier), days of the week, seasons, holidays, and conventions all impact the yield. In many cases, the aggregate supply is the least affected. ETHICAL DILEMMA 1. From the airline’s point of view, revenue (yield) management is crucia...
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This document was uploaded on 01/24/2014.

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