“Resource Management” Please respond to the following:
- Select a goods-producing organization and a service-providing organization of your choice. Suggest ways each organization can make aggregate planning decisions using the variables described in Exhibit 13.3 in the textbook.
- Compare and contrast the operational and managerial impacts of the aggregate planning decisions in terms of customer satisfaction.
- EXHIBIT 13.3 Example Aggregate Planning Variables and Revenue/Cost Implications Aggregate Planning Decision Options Revenue/Cost Implications Demand Management â— Pricing strategies â— Promotions and advertising Production rate â— Increased revenue and lower unit costs â— Economies of scale â— â— â— Overtime Undertime Subcontracting â— â— â— Higher labor costs and premiums Idle time/lost opportunity costs Overhead costs and some loss of control Workforce â— â— â— Hiring Layoffs Full- and part-time labor mix â— â— â— Acquisition and training costs Separation costs Labor cost and productivity changes Inventory â— â— â— Anticipation (build) inventories Allow stockouts Plan for backorders â— â— â— Inventory-carrying costs Lost sales (revenue) and customer loyalty costs Backorder costs and customer waiting costs Facilities, Equipment, and Transportation â— Open/closed facilities and hours â— Resource utilization â— Carbon emissions â— Mode (truck, rail, ship, air) â— Capacity and resource utilization â— Variable and fixed costs â— Speed and reliability of service and delivery â— Low- to high-utilization impact on unit costs â— Inbound and outbound costs per mode â— Number of full or partial loads