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Chapter 4: Q2DQ (page 507)

Distinguish between pure and mixed strategies in production planning.

Short Answer

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Answer

A production plan is a mechanical assembly that associations can use to encourage a strategy for satisfying expected needs while restricting costs. Production planning strategies plan for fulfilling a need that includes compromises in the number of laborers utilized, work hours, stock, and deficiencies.Three production planning strategies are given underneath;

  1. Chase strategy
  2. Stable workforce
  3. Level strategy

When only one of these factors is utilized for ingesting request fluctuations, it is named a pure strategy; at least two utilized in a blend establish a mixed strategy.

Step by step solution

01

Pure strategy

Pure level strategies are worried about keeping up with the labor force or result rates consistently. Production will be reliable within a similar time frame for which total planning is finished. Stock and delay purchases assist with overseeing request variances and market changes.

02

Mixed strategy

Under the mixed strategy, stock and labor force levels are permitted to change during the planning skyline. Consequently, it is a blend of the "chase" and "level" strategies. This will be a decent strategy if the expenses of keeping up with stock and changing labor force levels are moderately high.

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Most popular questions from this chapter

In a service setting, what general operations–related variable is not available compared to a production setting?

Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring, 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall, you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if overtime is necessary to prevent stock-outs at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, \(100 for each temp; layoff, \)200 for each worker laid off; inventory holding, \(5 per unit-quarter; backorder, \)10 per unit; straight time, \(5 per hour; over time, \)8 per hour. Assume that the productivity is 0.5 units per worker hour, with eight hours per day and 60 days per season.

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