Question

A catering company in Jebel Ali is contracted to produce 1200 economy class meals for Emirates Airlines every day, 330 days per year. The company employs 100 people that work in two shifts. Production of ready made meals is done in continuous mass production line, and involves a lot of manual work due to the hygiene, security and esthetics requirements for food products. What type of aggregate planning model would you recommend for them (5 points)? Give five reasons why this model would suit them better than alternative models (5 points).

Answer 1

1. The aggregate planning model suggested for the company:

a) I would recommend the Chase Strategy.

b) As in this the demand and the capacity or output is matching.

c) This planning model would result in considerable amount of hiring, firing, layoff of the employees.

d) Provides a great deal of flexibility on the part of the firm.

e) In this strategy the entity can make the inventory held to the lowest possible level.

2. Reason for recommending the same:

a) The company has the demand and the output equal as Emirates have already given the order for 330 days and that’s what they produce.

b) They have definite 100 employees who work in two shifts to meet the order. Thus the hiring and firing is low.

c) This also provided the entity with flexibility as they have many other issues like hygiene and security/aesthetics to be taken care of.

d) The company can also keep the inventory level lower by using this planning model which would eliminate the use of old raw materials or ingredients and can use fresh ingredients while preparing the meals.

e) The company can easily embrace this as they work mostly on a just in time mode of operation.