REGNRSG 105 Lecture Notes - Lecture 3: Profit Maximization, Yield Management, Aggregate Demand
Document Summary
Seasonal demand is quite common in some business areas. Capacity decisions in three levels: long term, intermediate term and short term. Long term: related to product or service selection etc: establish the capacity constraints within which intermediate planning must function. Short term: deciding the best way to achieve desired results within the constraints resulting from long-term and intermediate-term decisions. Business plan: encompass both long-term and intermediate planning: establishes guidelines for the organization, taking into account the organization"s strategies and policies, forecast of demand and different conditions, key objective: coordinate the intermediate plans of various organizational functions. Time-based competition: important to incorporate some flexibility in the aggregate plan to be able to handle changing requirements promptly: the aggregate plan will guide the more detailed planning that eventually leads to a master schedule. Aggregate planning is essentially a big-picture approach to planning.
