Case Study on Aggregate Planning

Aggregate Planning Case Study:

Aggregate planning is the process of planning the quantity and quality of the resources required for the production of various goods and services. An adequate aggregate planning is supposed to help the businessman with decision making and the right organization of the process of production and evaluate the possible expenditures, cost of production and understand whether the business is profitable or not. Then, the businessman evaluates also the required number of employees which should be involved into the process of production. Furthermore, he will see what qualities and skills every employee should possess to cope with the work successfully. Next, the entrepreneur is supposed to think about the inventory, equipment and machinery required for production and calculate their total cost. All these organizational expenditures of the novice business can become very expensive and even fatal for the developing firm, because if one wastes the whole capital on resources, equipment and salary, the profit can be very low.

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In fact, this process is quite natural, because if the firm survives more than half of the year, it will probably function further. This initial process of aggregate planning is a complicated one, because very often the starting capital is not calculated well and the business bankrupts. Aggregate planning touches upon not only the starting company, but every company which produces something. Before manufacturing a product, everything should be evaluated and predicted attentively. Moreover, the company should carry out the aggregate planning professionally in order to succeed from the first attempt, otherwise the firm will not be able to alter its activity and react to the changes and unpredictable situations (it is one of the most serious disadvantages of aggregate planning).

Aggregate planning is an important activity which influences the quality of the functioning of business and the student is able to learn about it more, if he collects information and reads additional information about aggregate planning in the reliable sources. One should be aware about the peculiarities of aggregate planning if he wants to succeed in case study writing, because the analysis of a narrow issue requires more attention and specific precise knowledge. One is asked to prepare a cause and effect sides of the case on aggregate planning and finally solve the problem in the most constructive way.

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