OM (with OM Online, 1 term (6 months) Printed Access Card)
6th Edition
ISBN: 9781305664791
Author: David Alan Collier, James R. Evans
Publisher: Cengage Learning
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Chapter 13, Problem 3CQD
Summary Introduction
Interpretation:
Types of aggregate planning strategies used in situation.
Concept Introduction:
There are two broad categories of aggregate planning strategies Level strategy and Chase strategy. A level strategy refers to keeping the regular production level constant even when the demand varies among different periods. Under this strategy, the labor and other resources have equal requirement throughout the planning horizon. Therefore, it is easy to implement the level strategy.
On the contrary, a chase strategy keeps resource level variable and matches the production rate with the demand rate for all the periods making the ending inventory zero for all the period.
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B. If labor turnover is high, it is generally best to pursue which aggregate planning strategy?
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Chapter 13 Solutions
OM (with OM Online, 1 term (6 months) Printed Access Card)
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- JAYB, manager of a Fabrication company, has the following aggregate demand requirements and other data for the upcoming four quarters. Table 5: Forecast and cost information [Jadual 5: Maklumat Ramalan dan kos] Quarter [Suku] Demand [Permintaan] Previous quarter's output [Keluaran suku sebelumnya] 1,500 units 1 1,400 Beginning inventory [Inventori awal] 200 units 2 1,000 Hiring workers [Pengambilan pekerja] RM6 per unit 3 1,500 Laying off workers [Pembuangan pekerja] RM11 per unit 4 1,300 Unit cost [Kos unit] RM30 per unit With the information given, JAYB wants you to calculate the total cost of using chase strategy by hiring and layoff workers.arrow_forwardDevelop a chase aggregate plan for Draper using apermanent workforce of 12 employees supplemented by overtime.All demand must be met each period.(a) Show what would happen if this plan were implemented.(b) Calculate the costs associated with this plan.(c) Evaluate the plan in terms of cost, customer service,operations, and human resources.arrow_forwardWhen would you use chase strategy in aggregate capacity planning? What is included in the plan?arrow_forward
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