does your organization use the aggregate planning strategies? Give examples and discuss. b. How is MPS done in your organization? Give examples and discuss
a. How does your organization use the aggregate planning strategies? Give examples and discuss.
b. How is MPS done in your organization? Give examples and discuss
The Aggregate Planning Strategies:
Aggregate planning is a marketing activity that which does an aggregate plan for the production process, in advance of 6-18 months, to give an idea to management as to what quantity of materials and other resources are to be procured and when, so that the total cost of operations of the organization is kept to the minimum.
The Following Aggregate planning Strategies used in Organization are as Follows:
1. Level Strategy:
As the name it self says about leveling strategies in level strategy looks to maintain a steady production rate and workforce level organization. In this strategy, organization requires a robust forecast demand as to increase or decrease production in anticipation of lower or higher customer demand. Advantage of level strategy is steady workforce. Disadvantage of level strategy is high inventory and increase back logs.
2. Chase Strategy:
As the name suggests, chase strategy looks to dynamically match demand with production. Advantage of chase strategy is lower inventory levels and back logs. Disadvantage is lower productivity, quality and depressed work force.
3. Hybrid Strategy:
Hybrid strategies which balances the production rate and work level in organization in Level strategies and Dynamically match the demand in production which balances both Level strategies and Chase Strategies.
- Examples of Aggregate Planning:
Automobile manufacturing which Aggregate planning would consider the total number of cars planned for not the individual models, colors, or options.
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