APP Flashcards
What is the length of aggregate operation planning?
Monthly
What products do app include
Sum of all the products in the same family
When is app especially helpful?
Seasonal fluctuations
What Is APP?
Determine the resource capacity needed to meet demand over an intermediate time horizon
Company wide guidelines for allocating resources
Determines overall quantities of finished products to be completed at each period of the planning horizon
Identify the cost associated to match supply and demand
What is a chase demand strategy?
Production matches demand and inventory is low. (Ei. Dell computer)
What are some advantages of chase demand strategy?
Flexibility
Simplicity
What are some drawbacks of chase demand strategy?
Cost
Employee démotivation
Quality
What is level production strategy?
Production is stable at all periods, even if demand fluctuates. Stock levels fluctuates
What are the advantages of level production strategy?
Stability
Simplicity
What are the drawbacks of level production strategy?
Rigidity
Costs
What is a mixed production strategy?
It encompasses the advantages of the previous strategies. Production changes are less drastic. Stock levels are in line with the changes
What are the advantages of mixed production?
Cost
Relative stability
What are the drawbacks for mixed production strategy?
Stocks
Management
