Chapter 1Critical Thinking Excercise 2
Why is it important to match Supply and demand? If a manager believes that supply and demand will not be equal, what actions could the manager take to increase the probability of achieving a match?
Complicated demand streams, separate product life cycles, different departmental
business processes, so many forecasts throughout business, sales & operations plans which do
not sync ups. All of those have been the key challenges which may severely impact balance in
between the supply as well as demand for customer driven enterprise of these days.
Industry analysts estimates that the collaboration may improve accuracy of the plans as
well as forecasts through as much as thirty percent.
Chapter 2 Discussion & Review Question 2
List the key ways that organizations compete.
The ways that organizations compete is based on price, product and
deliverables. Strategies and key success are ...view middle of the document...
Chapter 11 Discusiion & review Questions 3 & 7
3.What is aggregate planning? What is its purpose?
Aggregate planning is an operational activity critical to the organization as it looks to balance long-term strategic planning with short term production success. The purpose of aggregate planning is planning ahead because it takes time to implement plans. The second reason is strategic of the company and third aggregate planning help synchronize flow throughout the supply chain; it affects costs, equipment utilization, employment levels and customer satisfaction.
7. Briefly discuss the advantages and disadvantages of each of these planning strategies:
1. a. Maintain a level rate of output and let inventories absorb fluctuations in demand.
2. b. Vary the size of the workforce to correspond to predicted changes in demand requirements.
3. c. Maintain a constant workforce size, but vary hours worked to correspond to predicted demand requirements.
a. Maintaining a constant workforce has the advantage of making estimation of labor costs relatively easy, is good for morale, and minimizes hiring and layoff costs. However, inventory carrying costs tend to be high.
b. Since labor force has to be continually adjusted, hiring and layoff costs tend to be high. Due to the instability of the labor force, employee morale is low. However, the inventory carrying costs are very low because production is matched with demand, resulting in little or no inventory.
c.Varying the workforce can cause morale problems. Moreover, working overtime generally is less productive, increases quality problems, and increases the risk of accidents.
After reviewing the plan developed in the preceding example, planners have decided to
develop an alternative plan. They have learned that one person is about to retire from the
company. Rather than replace that person, they would like to stay with the smaller
workforce and use overtime to make up for the lost output. The reduced regular-time
output is 280 units per period. The maximum amount of overtime output per period is 40