Compare and contrast the operational and managerial impacts of the aggregate planning decisions

Resource Management” Please respond to the following in 2 paragraphs:

·Select a goods-producing organization and a service-providing organization of your choice. Suggest ways each organization can make aggregate planning decisions using the variables described in Exhibit 13.3 (Chapter 13).

·Compare and contrast the operational and managerial impacts of the aggregate planning decisions in terms of customer satisfaction.

Exhibit 13.3 Example Aggregate Planning Variables and Revenue/Cost Implications

Aggregate Planning Decision Options	Revenue/Cost Implications
Demand Management Pricing strategies Promotions and advertising	Increased revenue and lower unit costs Economies of scale
Production rate Overtime Undertime Subcontracting	Higher labor costs and premiums Idle time/lost opportunity costs Overhead costs and some loss of control
Workforce Hiring Layoffs Full- and part-time labor mix	Acquisition and training costs Separation costs Labor cost and productivity changes
Inventory Anticipation (build) inventories Allow stockouts Plan for backorders	Inventory-carrying costs Lost sales (revenue) and customer loyalty costs Backorder costs and customer waiting costs
Facilities, Equipment, and Transportation Open/closed facilities and hours Resource utilization Carbon emissions Mode (truck, rail, ship, air) Capacity and resource utilization	Variable and fixed costs Speed and reliability of service and delivery Low- to high-utilization impact on unit costs Inbound and outbound costs per mode Number of full or partial loads

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Compare and contrast the operational and managerial impacts of the aggregate planning decisions

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