Aggregate Planning Strategies

When generating an aggregate plan, the operations manager must answer several questions:

Student Tip

Managers can meet aggregate plans by adjusting either capacity or demand.

  1. Should inventories be used to absorb changes in demand during the planning period?

  2. Should changes be accommodated by varying the size of the workforce?

  3. Should part-timers be used, or should overtime and idle time absorb fluctuations?

  4. Should subcontractors be used on fluctuating orders so a stable workforce can be ­maintained?

  5. Should prices or other factors be changed to influence demand?

All of these are legitimate planning strategies. They ...

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