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Objective of aggregate Planning
Meet forecast demand while minimizing costs over the planning period
Aggregate planning strategies
Level Scheduling and Chase strategy
Level Scheduling
Production rate, output rate, and workforce level is constant
Chase strategy
Production = demand
TOtal Labor cost
7.6 workers x 8 workers x $10 per day x 124 days = $75392) (SLIDE Plan 2- level strategy - constant workforce + Subcontractors)
Total production
Required units per day * # of working days (38 × 124) = 4712 units
Num of subcontractor units
6200 (total forecast demand) - 4712 (total in house units produced) = 1488
Subcontractors Cost
1488 excess units (*) $20 per unit = 29760
900 divided by days in month gave 41
true, daily production rate
Mixed planning
Somewhere in between
Note 
Flashcard (40)