Forecasting and Aggregate Planning

 

You have learned about the various aspects of operations management. In this final week, the focus will be on two additional strategies, forecasting, and

aggregate planning. With as quickly as today’s marketplace changes, managers need to be able to maximize the use of available resources as well as adjust

strategies quickly to meet the market demands. Two basic production strategies, level strategy, and chase strategy, help managers transform forecasts or

estimates of market demand into a production plan for efficiently and effectively meeting that demand.

To prepare for this Discussion, consider the following:

One option for managing costs associated with changes in demand for a product or service is hiring additional personnel during periods of increasing demand

and conducting layoffs during lower-demand periods.

Post a 275-word statement that addresses the following:

• What are the advantages and disadvantages of using the option of hiring additional personnel during periods of increasing demand and conducting layoffs

during lower-demand periods for managing operating costs?

Additional notes:
1.) Use several resources and examples to support thinking.

 

 

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