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What are the advantages and disadvantages of three pure strategies of aggregate planning?
Wiki User
∙ 17y ago
The main advantage of aggregate planning is to keep costs (overhead) low or in-sync with stages of production. There are essentially three types of aggregate planning strategies, level, chase and mixed. Mixed is the method used most often as it is the easiest and involves the lowest costs. Chase is based on hiring and firing workers to match production and output, which is a major disadvantage as it tends to lower employee morale. The advantages are lower inventories and higher levels of employee utilization. Level is keeping a stable workforce and output, which are both advantages. The disadvantages are greater inventory costs, times of low employee utilization (idle time) and resources that vary over time.
Wiki User
∙ 17y ago
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