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Compare and contrast the operational and managerial impacts of the aggregate planning decisions

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Compare and contrast the operational and managerial impacts of the aggregate planning decisions

Resource Management” Please respond to the following in 2 paragraphs:

·Select a goods-producing organization and a service-providing organization of your choice. Suggest ways each organization can make aggregate planning decisions using the variables described in Exhibit 13.3 (Chapter 13).

·Compare and contrast the operational and managerial impacts of the aggregate planning decisions in terms of customer satisfaction.

Exhibit 13.3 Example Aggregate Planning Variables and Revenue/Cost Implications

Aggregate Planning Decision Options Revenue/Cost Implications
Demand Management

  • Pricing strategies
  • Promotions and advertising
  • Increased revenue and lower unit costs
  • Economies of scale
Production rate

  • Overtime
  • Undertime
  • Subcontracting
  • Higher labor costs and premiums
  • Idle time/lost opportunity costs
  • Overhead costs and some loss of control
Workforce

  • Hiring
  • Layoffs
  • Full- and part-time labor mix
  • Acquisition and training costs
  • Separation costs
  • Labor cost and productivity changes
Inventory

  • Anticipation (build) inventories
  • Allow stockouts
  • Plan for backorders
  • Inventory-carrying costs
  • Lost sales (revenue) and customer loyalty costs
  • Backorder costs and customer waiting costs
Facilities, Equipment, and Transportation

  • Open/closed facilities and hours
  • Resource utilization
  • Carbon emissions
  • Mode (truck, rail, ship, air)
  • Capacity and resource utilization
  • Variable and fixed costs
  • Speed and reliability of service and delivery
  • Low- to high-utilization impact on unit costs
  • Inbound and outbound costs per mode
  • Number of full or partial loads

© Cengage Learning 2013

Answer preview to compare and contrast the operational and managerial impacts of the aggregate planning decisionsCompare and contrast the operational and managerial impacts of the aggregate planning decisions

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