Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 3.4, Problem 23P
Summary Introduction

To think critically about: Suitable application of a chase and level strategy.

Introduction: Chase strategies are also referred to as the zero inventory plan; this focuses on a constant change each month, the workforce is adjusted regularly to match the demand. Level strategies are also referred to as the constant workforce plan, the capacity is uniform and instead the inventory is kept between the periods.

Aggregate planning allows organizations to plan ahead. Aggregate planning’s objective is to manage the positives of producing to meet their demand within close proximities whilst tackling interferences caused by changes in production levels and the change in workforce levels.

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