Aggregate Planning in Business
A good-producing organization is a company that manufactures a product to meet the end consumer’s demand. A service-providing refers to a company that provides services to the end-user to satisfy a need or desire. The good-producing organization that I would like to discuss is Intel. A large company has to make aggregate planning decisions based on the manufacturing process of its products (Nahmias & Olsen, 2020). Pricing strategies must be thought through and implemented to remain competitive.
The performance needs to be considered to determine if any overtime will be required or if any process would be better outsourced rather than done by employees. The workforce is probably next to determined: if the company has enough employees for the workload. When dealing with aggregate scheduling, the company needs to make difficult decisions to determine if any layoffs are needed due to production downtime. The next planning detail to pay attention to is inventory. It is important to consider safety stock and stockpiling additional parts that help make a normal plan. The next major planning step will be consideration of any room equipment. This includes business hours and any tools or parts used to complete any job or project.
An example of a service provider would be UPS – the postal service. The postal service will aggregate the plan a little differently. The most important factor for the postal service will be production speed. This principle includes ensuring that overtime work is available to employees, especially on public holidays. Staff always plays a key role in the postal service. Work can be slow outside of the peak season, and employees have to be laid off. The final part of the overall planning of the postal service will be the planning of facilities and equipment. There must be enough trucks and equipment on the roads to meet all postal needs.
Nahmias, S., & Olsen, T.L. (2020). Production and Operations Analytics: Eighth Edition. Waveland Press.