14.0 Learning Outcomes

At the end of this chapter, students will be able to:

• Define aggregate planning and its relationship to Sales and Operations Planning (S&OP).
• Identify the key inputs and objectives of aggregate planning.
• Compare and contrast different aggregate planning strategies: chase, level, and mixed.
• Apply chase, level, and mixed strategies to a given scenario and calculate the total cost for each.
• Describe mathematical approaches to aggregate planning, including linear programming and the transportation model.
• Formulate a linear programming model for a simple production planning problem.
• Utilize the transportation method to determine an aggregate production plan.
• Explain the management coefficient model and decision rules in aggregate planning.
• Apply the management coefficient model to adjust workforce levels based on forecasted demand and managerial judgment.
• Describe aggregate planning in the service sector and the factors to consider.