Operations Management: Sustainability and Supply Chain Management (12th Edition)
Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 13, Problem 3DQ
Summary Introduction

To define: Aggregate planning

Introduction: Planning is the process that helps the firm to decide a better way to achieve its goals. Before determining the ways to achieve the goals, the firm should understand the objectives of the firm, which was the major motive of the planning process.

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Explain AGGREGATE PLANNING TECHNIQUES?
Explain the managerial significance of aggregate planning.
Costs Previous quarter's output Beginning inventory Stockout cost for backorders Inventory holding cost 1,500 units O units $50 per unit $10 per unit for every unit held at the end of the quarter $40 per unit $80 per unit $30 per unit $15 extra per unit Not available Hiring workers Layoff workers Unit cost Overtime Subcontracting a) Use Chase Demand Strategy b) Use Level Production Strategy with Backordering
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