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In: Operations Management

Aggregate planning strategies. There are 3 strategies (level, Hybrid and chase) ( Kindly explain in details)

Aggregate planning strategies. There are 3 strategies (level, Hybrid and chase) ( Kindly explain in details)

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Expert Solution

Level strategy

Level strategy talks about how to produce an aggregate plan which can maintain up production rate or a steady employment level. To satisfy their customers the firm should raise or decrease its inventory level compared to the increase or decrease of forecasted demand. When the demand is said to be low the firm tries to maintain the level workforce and rate. This helped the form to come up with the higher inventory level. And when the demand starts increasing the farm is capable of continuing with the study production rate.

Chase strategy

Chase strategy talks about matching the capacity and demand at each period of time. It can result in a good amount of hiring laying off and firing of employees. The firm can face with a lot of unhappy employees, rise in inventory carrying cost, Union problems etc. The primary advantage of this strategy is that it allows inventory to be kept at the lowest level and help few firms to save.

Hybrid planning

Hybrid strategy is a mix of both level and CS strategy which gives a better result. It helps us to maintain a balance between recruiting, stock level, production rate and termination. It helps to cover short term picks bye by hiring employees for temporary production.


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