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.
- Spring '14