Aggregate planning strategies

In general, a company attempts to use a combination of the three costs to best meet demand. Therefore, the fundamental trade-offs available to a planner are among the following  

Flexibility strategy—using utilization as the lever This strategy may be used if there is excess machine capacity (i.e., if machines are not used 24 hours a day, seven days a week) and the workforce shows scheduling flexibility. In this case, the workforce (capacity) is kept stable, but the number of hours worked is varied over time in an effort to synchronize production with demand. A planner can use variable amounts of overtime or a flexible schedule to achieve this synchronization. 

In practice, a planner is most likely to come np with a tailored or hybrid strategy that combines aspects of aU three approaches. 

---

The aggregate planning problem is basically a medium range tactical supply chain problem. There are primarily three aggregate planning strategies a company can follow. 

Table 2.17 gives a comparison of the two aggregate planning strategies with respect to production, workforce, inventory, and other factors. 

The managerial issues that affect the choice of the aggregate planning strategy are the following ... 

A simple definition that I have heard for aggregate planning is two- to 12-month capacity plarming. There are three components of this type of planning. The first is the business plan, which determines the strategy for capacity and production. The second is the production plan, which creates the production capacity utilization. The third is the master schedule, which establishes the production schedule for the specific products. 

State three differences between the chase strategy and the level strategy in aggregate planning. Which strategy is better imder what conditions ... 

The principal functions of the NDRC are to formulate and implement strategies for national economic and social development, long term plans, annual plans, industrial policies and price policies, to monitor and adjust the performance of the national economy, to maintain the balance of economic aggregates and to optimize major economic structures. Also it examines and approves major construction projects, as part of the broad responsibilities outlined above. 

---