There are two basic Aggregate Planning Strategies Level Capa

There are two basic Aggregate Planning Strategies:

Level Capacity:

Chase Demand:

Which of these two strategies do you recommend and Why?

Solution

There are two basic Aggregate Planning Strategies:

Both have some advantages and disadvantages so we recommend to an organization to select a hybrid strategy because it has both Level Capacity and Chase Demand activity critical to the organization.

Level Capacity

Chase Demand

Advantage

It maintains a steady production rate and workforce level.

It has lower inventory levels and back logs.

Disadvantage

It has high inventory and increase back logs.

It has lower productivity, quality and depressed work force.