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5 Cards in this Set
- Front
- Back
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Aggregate productions planning
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a managerial statement of time-phased production rates, work-force levels, and inventory investment, which takes into account customer requirements and capacity limitations
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Nature of APP
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- Aggregate
>> classes of products >> labor or other inputs >> geographic location of production - time horizon -- medium (month-year) - time buckets -- divisions of horizons - rolling horizon - nature of business determines >> typically 1 year with 1 month buckets |
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3 general strategic plans
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how to meet changes in demand
- chase approach - level approach |
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Level approach
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Capacities (workforce levels, output rates, etc.) are kept constant over the planning horizon
advantage: stable output rates and workforce levels disadvantage: greater inventory cost increased overtime and idle time resource utilizations that vary over time |
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Chase approach
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Capacities (workforce levels, output rates, etc.) are adjusted to match demand requirements over the planning horizon
advantages: investment in inventory is low labor utilization is kept high disadvantage: the cost of adjusting output rates and/or workforce levels |
