Week 6 - Discussion Post - Business Operations- Response is due by today & response to students by Sat.

Week 6 Discussion

Forecasting and Aggregate Planning

Throughout this course, you have learned about the various aspects of operations management. In this final week, the focus has been on two additional strategies, forecasting and aggregate planning. With as quickly as today's marketplace changes, managers need to be able to maximize the use of available resources as well as adjust strategies quickly to meet the market demands. Two basic production strategies, level strategy and chase strategy, help managers transform forecasts or estimates of market demand into a production plan for efficiently and effectively meeting that demand.

Consider what you have learned about the use of aggregate planning. In the course text, review the list of variables that can be used in aggregate planning to modify the supply.

To prepare for this Discussion, consider the following:

One option for managing costs associated with changes in demand for a product or service is hiring additional personnel during periods of increasing demand and conducting layoffs during lower-demand periods.

Post by Day 3 a 250- to 300-word statement that addresses the following:

• What are the advantages and disadvantages of using the option of hiring additional personnel during periods of increasing demand and conducting layoffs during lower-demand periods for managing operating costs?

Read a selection of your colleagues’ postings.

Respond by Day 6 to two or more of your colleagues’ postings in one or more of the following ways:

• Ask a probing question
• Share an insight from having read your colleague’s posting.
• Offer and support an opinion.
• Make a suggestion.
• Expand on your colleague’s posting.

Return to this Discussion in a few days to read the responses to your initial posting. Note what you learned and the insights you gained as a result of the comments your colleagues made.

Be sure to support your work with specific reference citations from the Learning Resources and any additional sources you consulted. All references must be cited in APA format in an alphabetized list of references at the end of your summary post.

Week 6 Learning Resources

This page contains the Learning Resources for this week. Be sure to scroll down the page to see all of this week's assigned Learning Resources.

Required Resources

Readings

• Schroeder, R. G., Goldstein, S. M., & Rungusanatham, M. J. (2013). Operations management in the supply chain: Decisions and cases(6th ed.). New York, NY: McGraw-Hill/Irwin.
  • Chapter 11, “Forecasting” (pp. 251–284)
    
    This chapter introduces you to a number of forecasting models that deal with long-range planning. These models have been developed to provide a more scientific approach to the forecasting process. Both qualitative and quantitative models of forecasting are covered in this chapter, along with the advantages and recommended use of each forecasting model.
    
    Focus on the definitions provided throughout the chapter. Review and think about the examples and anecdotes provided in the chapters that illustrate the major ideas being conveyed. Consider the recommended use of each of the forecasting models. Ask yourself what factors need to be considered when selecting which forecasting model to use.
  • Chapter 12, “Capacity Planning” (pp. 285–319)
    
    Chapter 12 continues the discussion on decision-making for the future needs of an organization. This chapter describes facilities planning and facilities strategy. Aggregate planning is also discussed, along with the options and strategies for performing aggregate planning. Finally, level and chase strategies for meeting fluctuating demands in the market are presented.
    
    Focus on the definitions provided throughout the chapter. Review and think about the examples and anecdotes provided in the chapters that illustrate the major ideas being conveyed. Consider the options and strategies that are presented for performing aggregate planning. In particular, ask yourself how the strategy used affects costing decisions.

Media

• McGraw-Hill (Producer). (2013). Service design at Hotel Monaco [Video file]. Retrieved from http://highered.mheducation.com/sites/0073525243/student_view0/chapter12/video_clips.html
  
  The Hotel Monaco is a service organization. As you view the video, identify how this company used the principles of aggregate planning as described in Chapter 12.
  
  Focus on the type of strategy the company used: level or chase.

Optional Resources

• Schroeder, R. G., Goldstein, S. M., & Rungtusanatham, M. J. (2013). Operations management in the supply chain (6th ed.). Retrieved from
  http://highered.mheducation.com/sites/0073525243/student_view0/index.html