Question

can someone explain how aggregate planning comes in the service business ???

like aggregate planning for services ?

kindly expalin in details ...

Answer 1

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AGGREGATE PLANNING FOR SERVICES :

This consists of establishing, controlling and managing the operating schedule of an organization. This organizes business areas consisting of a projected revenue outlook, output levels, consumer backlogs and stock rates. If incremental planning is carried out efficiently, the effects of regular preparation are reduced.

The various features of aggregate planning for services are mentioned below:

1. Since there is nothing like inventory or inventory of commodities, service-oriented companies have little benefit in holding inventory stocks in periods when consumer demand is weak. Services are perishable when unused capacities are considered waste. In the aggregate planning process. For example, a vacant seat can not be saved and sold after a flight or a movie theatre.
2. Due to frequent and severe variations, demand for services is hard to predict. Exponential distribution is used to stimulate irregular service demand. Management sets customer service standards that reflect the proportion of demand needed to be met. It is an essential input in the overall planning of services.
3. It is hard to build a reasonable capacity estimate in the case of services. This is impossible to quantify the various resources and their particular existence. Units of ability can vary. For instance, should a hotel 's capacity be specified according to staff size, number of patients, number of beds?
4. There are various outlets for many programs. At each site, an overall planning process includes determination of the range of employees and services.
5. The most restrictive tool for programs is jobs. A part-time employer of contract employees may monitor variations in demand.