CHAPTER 13
AGGREGATE PLANNING
The planning Process [pic]
Aggregate Planning • Combines appropriate resources into general terms • Part of a larger production planning system • Disaggregation breaks the plan down into greater detail • Disaggregation results in a master production schedule
Aggregate planning Strategies 1. Use inventories to absorb changes in demand 2. Accommodate changes by varying workforce size 3. Use part-timers, overtime, or idle time to absorb changes 4. Use subcontractors and maintain a stable workforce 5. Change prices or other factors to influence demand
Capacity Options • Changing inventory levels o Increase inventory in low demand periods to meet high
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Shortages may result |not service, operations. |
| |production changes. |in lost sales. | |
|Varying workforce size by |Avoids the costs of other |Hiring, layoff, and training |Used where size of labor pool |
|hiring or layoffs |alternatives. |costs may be significant. |is large. |
|Varying production rates |Matches seasonal fluctuations |Overtime premiums; tired |Allows flexibility within the |
|through overtime or idle time |without hiring/ training costs.|workers; may not meet demand. |aggregate plan. |
|Sub-contracting |Permits flexibility and |Loss of quality control; |Applies mainly in production |
| |smoothing of the firm’s output.|reduced profits; loss of future|settings. |
| | |business. | |
|Using part-time workers |Is less costly and more |High turnover/ training costs; |Good for unskilled jobs in |
However, this move is not always a wise one because when an enterprise has fewer workers it would reduce its productivity which would mean more
Companies can just settle for fewer profits by absorbing the increase cost of their current labor supply instead of dismissing workers. This is one method might be the least popular method and the least used by firms. Using this approach decreases the company’s net profit. This method should only be used by firms in a strong financial position and there is no other approach that can be used.
| 1) Reduced personnel costs2) Access to better and more specialized talent3) Allows for better growth potential, particularly concerning shared services
Which of the following include any of a variety of programs that provide pay for time-not-worked, employee services, and protection programs?
* Adjusting the workforce in response to changing demand eliminates some of the limitations of Production Plan 2
The employing of contingent workers is an intentional business decision by companies. The search for greater flexibility, in terms of numbers of employees and in terms of the skills those employees possess, is the main reason reported by companies for the increasing use of contingent workers. (Daly, 2013) According to the Department of Labor (2015), employers
As Coral reviews the master schedule and the pending orders, she can see that given the current plan, they will not process enough subassemblies to cover the upcoming orders. The master schedule is a statement of exactly what will be produced. It must simultaneously satisfy the needs of sales and marketing and be feasible in terms of operations. Developing a master schedule that is close to the aggregate plan, yet still satisfies marketing and operations, is not an easy task. The aggregate plan was developed based on a strategy that maintained acceptable inventory and workforce
Research from Wilson (1989) has suggested it could lead to consequential job losses. To support Wilson’s suggestion, that a negative effects exists, is the assumption derived from the supply and demand theory. Illustrated below is a diagram similar to that of the research of Power P (2005).
As the person conducting an impact assessment of their use, one would say that the legal problem that are face from the Control Orders is the human rights organization and freedom rights of the people. Another problem that the Control Orders face is the terrorist recruiters use young kids to carry out the terrorist attacks, so it would be harder to incarcerate. The Control Orders would be useful against suspected terrorist, “being in certain areas or leaving Australia, owning or using certain things, accessing certain forms of technology, including the internet, communicating or associating with certain people and carrying out certain activities, including work” (Department, 1995).
Ann Taylor is a clothing store that provides high end, or upscale, clothing to professional women. The store chain was started in 1954 by a man named Robert Liebeskind. The name of the store was actually taken from one of Robert’s best selling dresses and not an actual person (Pearce & Robinson, 2013).
Most direct costs can be charged to a program without any allocations, such as salaries and benefits of most of employees when assigned full time to a particular program;
Gioe Melaney is the general director of Southern Toro – a subsidiary company included in the distribution system of Toron Coporation in Galveston, Taxas.
The second mentioned tool is using overtime which is considered as making some of workers work for an additional 40 hours a week. The obvious benefit of
The framework describes internal control as a process designed to provide reasonable assurance regarding the achievement of objectives in the following categories:
There are major challenges confronting the workforce program managers and executives that are focused on staffing. In this area a common language must be ensured to support hiring practices. The lack of common words and definitions can cause serious communication concerns between program managers and suppliers of benchmarking workforce programs across organizations. In order to help prevent these issues, lexicon suggests a set of “working definitions to be use by program managers (American Staffing Association 2015, para.1).