Unformatted text preview: making changes from one period to the next.
Bottleneck Planning. Problem in meeting peak demand
because of capacity restrictions.
Planning Horizon. Assumed given (T), but what is “right”
value? Rolling horizons and end of horizon effect are
both important issues.
Treatment of Demand. Assume demand is known.
Ignores uncertainty to focus on the
predictable/systematic variations in demand, such as
seasonality. Costs in Aggregate Planning
Smoothing changing size of the work force
changing number of units produced
Holding primary component: opportunity cost of
Shortage Cost of demand exceeding stock on hand.
Why should shorta...
View Full Document
- Spring '14
- Economics, Worker Produced Production