Problems (Aggregate Planning) I. Develop a production plan and calculate the annual cost for a firm whose unit demand forecast is fall. 10,000; winter, 8,000; spring. 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers …
Review and Discussion Questions 1. What are the basic controllable variables of ~ production planning problem? What are the four major costs? 2. Distinguish between pure and mixed strategies in production planning. 3. Compare the best plans in the C&A Company and the Tucson Parks and Recreation Department. What do they have in common? 4. …
Conclusion Aggregate planning provides the link between the corporate strategic and capacity plans and workforce size, inventory quantity. and production levels. It does not involve detailed planning. It is also useful to point out some practical consideration – in aggregate planning. First, demand variations are a fact of life, so the planning system must include …
Pres old Capacity A final requirement for the successful implementation of yield management is that the lowerpriced capacity can be sold in advance. This limits the availability of capacity to the high erpriced market segments. As an illustration, hotels usually work with conference planners several years in advance of a conference, offering a given number …
Product Perishability The underlying reason that yield management can be applied to many types of services is the perishability of service capacity. In other words, service capital cannot be saved for future use. (Wouldn’t it be great if the airlines could save all of their empty seats during the year for use during the Thanksgiving and Christmas …
