MGT 3121 Lecture Notes - Lecture 7: Opportunity Cost, Overselling
23 Mar 2017
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Managing capacity and demand aggregate planning - chapter 11. Rather than formulas on cheat sheet put instructions for steps to follow. Wsj article says very large shoe stores in china. People want to make goods where it is cheaper. If demand fluctuates a lot but demand is fixed. Expenses come in spurts but income is steady. How do we use our steady income to pay for fluctuating expenses. We can try to influence demand of customers but effectiveness depends on customers. Use expected value to play game to your advantage for reservation systems. Scheduling work shifts- 24/7 operations nonstop needs enough workers to cover operations. How can we have the minimum amt of workers. Read this section put no need for computations in txtbk. Sharing capacity: color good but size of dress isn"t. Come in everyday and produce same amount. This is just like you having fixed output but you need to buffer demand fluctuation.
