Methods for Aggregate Planning
In this section, we introduce techniques that operations managers use to develop aggregate plans. They range from the widely used graphical method to the transportation method of linear programming.
Graphical Methods
Graphical techniques are popular because they are easy to understand and use. These plans work with a few variables at a time to allow planners to compare projected demand with existing capacity. They are trial-and-error approaches that do not guarantee an optimal production plan, but they require only limited computations and can be performed by clerical staff. Following are the five steps in the graphical method:
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