Modification of supply - aggregate planning, Project Management

Modification of Supply - Aggregate Planning

Some of the methods by which we can modify the supply to match the demand are:

a.Hiring and Lay off of Employees: As this policy deals with the employees one must be careful enough while selecting this strategy it is because by hiring labours on temporary basis the hiring charges may go high or some times the workers may not available in time when needed. Or if the manager goes for lay off strategy, he going to invite the troubles from the labor unions at the same time the employee morale may go down. Sometime the company may have to face legal problems due to lay off. Before taking decisions one has to weigh both positive and negative aspects so that the decisions taken will not hurt anybody.

b.Overtime and Under Time: When the changes in supply are manager and temporary overtime and under time are most commonly used. By adopting overtime, we increase the production but overtime costs are to be added to the normal costs. By under time the production may be reduced and under time costs are to be considered here.

c.Use of Part time or Temporary Labor: When the manager has to increase the supply he has to increase the capacity. By employing the temporary or part time labor the manager can do this depending on the type of labor the cost may be slightly higher or lower than the normal labor cost.

d.Subcontracting: In case the another company has some spare capacity and is prepared to hire the capacity the manager can give a part of production as subcontract to that firm. The parent company all the time can send its workers to have a close control over the quality of the product produced. Depending on the hire charges the costs of products produced under subcontracting may slightly the normal costs.

Posted Date: 1/30/2013 7:41:53 AM | Location : United States







Related Discussions:- Modification of supply - aggregate planning, Assignment Help, Ask Question on Modification of supply - aggregate planning, Get Answer, Expert's Help, Modification of supply - aggregate planning Discussions

Write discussion on Modification of supply - aggregate planning
Your posts are moderated
Related Questions
Discuss the considerations that management should take into account in determining the design of an accounting system which will satisfy both (i) its own information requirement

We are two partners, starting a new business "Events Management" and we have to prepare the business plan with 7P''s, how could you help us?

Do it Right First Time : TQM adopt the policy of zero defect. There is no scope for rework and rejection. The right first time or zero defect is the result of an empha

Explain about the term Hygiene Factors. Hygiene Factors: Maslow’s require Hierarchy Theory upon Motivation has been modified through Fredrick Herzberg and his relates. Th

Step 1 Advise the instructor in writing if you will be working on the project individually or with another class member(s). Choose your team member (s),carefully, as you will have

Question: (a) Explain the eight fundamental Quality Management Principles of the standard ISO 9001: 2008. (b) Explain the relevance of the various requirements in terms of M

Perform a status assessment of the second Elaboration iteration. DO NOT GENERALISE. Assess each activity separately against the outcomes specified for the activity. Generate a deta

Illustrate the term Industrial Relations briefly? Industrial Relations (IR): Industrial Relations are that aspect of management that deals along with the manpower of the e

PERIL Database   The Project Experience Risk Information Library (PERIL) is a database, which provides a basis for the analysis of high-tech project risk.  A project can have

Input Data Collection The input data for the model was collected accurately to be as close as possible to a typical emergency room. We expected that the number of patients comi