Explain the relationship between short-term scheduling, capacity planning, aggregate planning, and a master schedule

Aggregate planning deals with a number of constraints.These typically are:a) job assignments, job ordering, dispatching, and overtime help.b) part-time help, weekly scheduling, and SKU production scheduling.c) subcontracting, employment levels, inventory levels, and capacity.d) capital investment, expansion or contracting capacity, and R&D.e) facility location, production budgeting, overtime, and R&D.

Dwayne Cole, owner of a F lorida firm that ma nufacturesdisplay cabinets, develops an 8-month aggregate plan.Demand and capacity (in units) a re fo recast as follows:                                                                            The cost of producing each unit is $1,000 on regular time, $ 1,300 onovertime, and $1,800 on a subcontract. Inventory carrying cost is$200 per unit per month. There is no beginning or ending inventory )in stock, and no backorders are permitted from period to period. ~Let the production (workforce) vary by using regular timefirst, then overtime, and then subcontracting.a) Set up a production plan that minimizes cost by producingexactly what the demand is each month. This plan allows nobackorders or inventory. What is this plan's cost?b) Through better p lanning, regular-time production can be setat exactly the same amount, 275 units, per month. If demandcannot be met there is no cost assigned to shortages and theywill not be filled. Does this a lter…

Define capacity and priority. Why are they important in production planning?