Concept explainers
What three levels of planning involve operations managers? What kinds of decisions are made at the various levels?
To determine: The three levels of planning and the kind of decisions that can be made at each level.
Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.
Explanation of Solution
The three levels of planning and the kind of decisions that can be made at each level are as follows:
Long range, intermediate, and short-range are the three levels of planning.
Long-range:
The kind of decisions the operations managers made at long-range level are as follows:
Product design
Location
Work system design and
Long-range capacity
Intermediate:
The kind of decisions the operations managers made at intermediate level are as follows:
Finished goods inventories
Output
Subcontracting
Levels of employment
Backorders
Short-range:
The kind of decisions the operations managers made at short-range level are as follows:
Machine loading
Work schedules
Purchase order quantities
Job sequencing
Production lot sizes
Job assignments
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Chapter 11 Solutions
EBK OPERATIONS MANAGEMENT
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