Journal on Management options of aggregate planning

Elaborating the concepts

Capacity requirements: In modern society, every organization needs a well-established foundation of resources that include physical equipment, labor and capital. These resources are crucial in running an organization efficiently whether a service-line or a business dealing with production of goods. The organizations that have sufficient facilities are usually able to cope with the market dynamics especially in cases where demand for products rises abruptly. In a given work station, capacity is calculated by multiplying the number of units requested by the unit resource required in production and then adding the set time. Similarly, in a service-providing organization, the actual workplace and facilities available are equally important.

Facility layout: when an organization is putting up a structure it needs to align the design and arrangement to fit the requirements of specific type of production activity. The layout should be set with the goal of improving efficiency while handling products, avoid wastage of space and ensure easy movement of goods and people. A layout focused on facility is arranged in a way to fit the physical infrastructure of the business while that of product layout aims at meeting the series of activities of production of an organization in every section; both in service-oriented firm and in a business dealing with manufacturing of tangible products. Another arrangement is that of cellular layout which is designed as per the number of compartments required in the levels of production. While a process layout is designed to entail all the parallel activities under same facility.

Strategies for aggregate planning: Aggregate planning is involved with measuring the units of production of an organization. The strategies are employed by the management to help adjust to supply-demand dynamics that happen in the market in case of fluctuations. A system that employs a level production strategy, the units of production do not change from the set rates in every period. The organization maintains a constant of units produced as the resources for production remain stable and fixed. On the other hand, an organization that uses a chase-demand approach periodically fixes the proportion of goods to adjust to the market situation. This strategy is mainly adopted to reduce loses projected by leveling the units produced to the demand of that specific period.

Application of the concepts.       

Capacity requirements: the resources that a business has within its exposure helps it in production to meet the demand of the market in a stable way. For instance the capacity to produce more goods or services in case of unforeseen increment in demand would mainly rely on the resources of the organization. In a service type of business for instance pizza delivery, availability of labor and necessary equipment would be of ultimate importance. The number of employees providing labor and the machines used in the production are the main determinants. In my organization, to increase efficiency in meeting the market demand I can increase the staff as well as the machines to suit the purpose. Availability of capital is another crucial issue to consider since the amount required for running an inventory in different types of businesses varies greatly with their sizes. A firm that has large output require more capital to run the business activities before it gets returns from the sales which ensures consistence in production.

Facility Layout: Having a flexible layout of a structure will enable the business to carry out its activities more efficiently by maximizing use of available space and ensuring easy handling of goods. The design of the business entity is shaped in a way it will be useful for the specific production being set up. In running a manufacturing type of business for instance a beer making company, I will go for a product layout which is focused on developing every stage of movement of the product in a systematic way. The layout is also suitable since the tasks performed in one stage are continuous for whole units hence ensuring consistency and fast tracking of a problem. Hence, selection of a facility layout should be based on the type of a business one intends to build to ensure flexibility, compatibility and efficiency in production.

Strategies for aggregate planning: As the business grows, there emerges a need to make changes or adopt a specific strategy in production…


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