BUS301, Trimester 1 2017 1. Supply chain management entails decision making on a

Question

BUS301, Trimester 1 2017 1. Supply chain management entails decision making on at least three time schedules, one of which entails aggregate planning. i. What is the nature and purpose of aggregate planning, and which decision variables are involved? How does an aggregate plan fit within a firm's supply chain management decision framework? (10 marks) ii. List and describe three strategies that might be pursued in aggregate planning and identify the conditions under which a firm might employ each of them. (10 marks) ii. For a firm operating in an industry that you are familiar with, identify an action of government that would affect an aggregate plan. Identify and explain how the aggregate plan would be affected. (5 marks)

Explanation / Answer

A good production plan should be consistent with organizational policy, meeting demand requirements , be within capacity constraints and minimizes costs.

     Aggregate planning is required for meet firm’s overall objectives through proper resource allocation .

It involves following decision variable:

output rates –

employment levels –

inventory –

subcontracting-

The raw materials, spare parts and others required for production will flow through supply chain, from suppliers to company. After the production finished inventory will flow in down word direction. So supply, availability and demand is depends on supply chain decision frame work. Depends on supply chain decision frame work the a aggregate planning done. Among various input data required to aggregate planning, one is customer order and second is inventory status. The customer order will flow through supply chain in reverse direction of product flow. Like this the aggregate planning is linked with supply chain.

2. Aggregate Planning Strategies :

3.The aggregate planning have to take so many decisions , among that some will be affected by government rules. Those are :

Hiring and firing. The company cannot hire and fire the workers, according to it’s need. For this the organization has to pay some compensation in the form of hiring and firing cost.

Number of working hours is another decision variable in aggregate planning. According to mental and physical stability working hours required to assign the workers.

Over time also another hindrance to aggregate planning by government.

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.