April 2019
Beginner to intermediate
1240 pages
45h 43m
English
Content preview from Data Science for Business and Decision Making
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16.6.7 Aggregated Planning Problem
Aggregated planning studies the balance between production and demand. The period of time considered is the medium run. In order to meet a fluctuating demand, at a minimum cost, we can change the company’s resources (employees, production, and inventory levels), we can influence the demand, or we can try to find a combination of both strategies.
As strategies to influence the demand, we have: advertising, sales, development of alternative products, etc. As strategies to influence production, we can highlight:
- – Controlling inventory levels;
- – Hiring and firing employees;
- – Overtime or reducing the number of working hours;
- – Outsourcing.
Most of the methods used to solve the aggregated planning problem consider ...
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