EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 13, Problem 3CQD
Summary Introduction
Interpretation:
Types of aggregate planning strategies used in situation.
Concept Introduction:
There are two broad categories of aggregate planning strategies Level strategy and Chase strategy. A level strategy refers to keeping the regular production level constant even when the demand varies among different periods. Under this strategy, the labor and other resources have equal requirement throughout the planning horizon. Therefore, it is easy to implement the level strategy.
On the contrary, a chase strategy keeps resource level variable and matches the production rate with the demand rate for all the periods making the ending inventory zero for all the period.
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