There are two basic Aggregate Planning Strategies Level Capa

There are two basic Aggregate Planning Strategies:

Level Capacity: Maintaining a steady rate of regular-time output while meeting variations in demand by a combination of options.

Chase Demand: Matching capacity to demand; the planned output for a period is the expected demand for that period.

Which of these two strategies do you recommend and Why?

Solution

Level capacity strategy

A lot of organizations consider a strength workforce as extremely appealing. As workforce change during hire and lying off can have collision of the live and confidence of member of staff and can be troublesome for manager organizations often choose to handle rough insist in further conduct

Constant production rates and employees strength

Chase demand strategy:

A main benefit of this strategy is that inventory can be reserved comparatively low which can field considerable reduction for an organization

Investment in record is low

Employment utilization is very high