Aggregate OPSCM Planning (Operation & supply chain management)

CLASS MEMO
to:

FELLOW STUDENTS

from:

subject:

Aggregate OPSCM Planning

date:

24 Feb 2019

CC:

FACULTY MEMBER

PURPOSE
The purpose of this memo is to discuss the effectiveness of aggregate planning in supply chain management and in organizations as a whole.
SUMMARY
Aggregate planning refers to an exercise in marketing that conducts an aggregate structure for the production procedure, six to eighteen months prior to the manufacturing of the product. The aim is to provide the administration with an estimate as to what amount of materials are to be purchased and when. As a result, the total operating expenses of the company are maintained at a minimum over the entire duration.
DISCUSSION
The supply chain management is regarded among the most significant fundamental functions of organizations in production as well as service sectors. SCM regards all the steps from the purchase of raw materials to utilization by the consumers in accomplishing the demand for various commodities and services (Schroeder, 2007). Generally, whenever there is an increased market either for a commodity or service and distribution to satisfy the market, as supply chain arises. Specifically, a supply mechanism gets specific inputs that are transformed into required outputs through a transmuting procedure to meet the demand. Consequently, any exercise in satisfying the market is in the scope of the supply chain structure that is being considered. Any organization that either manufactures or provides service has a cardinal supply chain structure and in the center of this structure is what is referred to as aggregate planning. The manufacturing and operations exercises concentrate on the flow of data as well as material amidst the supply chain (Turkey, 2016).
The Aggregate Planning Problem
The average aggreg...