The Role of Aggregate Planning: The Case of Sealwrap Essay
Aggregate planning is basically a process of analyzing and establishing an initial estimated schedule of the total operations of an organization or firm, in this case, Sealwrap . The plan usually includes target sales forecasts, production levels, inventory levels, and customer backlogs. The role of the schedule is to meet the demand and minimize cost (Gale, 2006). The main objective of aggregate planning is to stabilize and balance capacity and demand while still minimizing cost.
Other objectives include maximization of customer service and utilization of equipment and facilities and minimization of inventory investments, changes in workforce levels and changes in rates of production (“Aggregate Planning”, 2006). There are a lot of strategies that has to be considered in aggregate planning. An example is the Level Production strategy which deals with production at a constant rate and using inventory to absorb demand instabilities(Taylor, 2006). In short, the firm’s capacities are held constant over the planning horizon (“Aggregate Planning”, 2006).
Examples of this are labor levels, output, and production schedules. Another strategy is the Chase strategy which deals with the hiring and firing of personnel to meet the demand. Unlike the level production strategy, capacities of the firm are adjusted to meet the demand
Need essay sample on "The Role of Aggregate Planning: The Case of Sealwrap"? We will write a custom essay sample specifically for you for only $ 13.90/page
It is the combination of chase and level production strategies (“Aggregate Planning”, 2006). References: Aggregate Planning. (2006). Retrieved December 12, 2006, from http://www. uoguelph. ca/~dsparlin/aggregat. htm Gale, T. (2006). Aggregate Planning. Retrieved December 12, 2006, from http://business. enotes. com/management-encyclopedia/aggregate-planning Taylor, R. R. B. W. (2006). Aggregate Planning. 5th. Retrieved December 12, 2006, from http://homepages. stmartin. edu/fac_staff/dstout/Ba320/ppts_5th_edition/ch13. ppt#313,13,Chase Demand Strategy