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Hire a WriterThe companies that are successful are to be forever planning because there is a need for lead time for them to prepare for implementing plans that the organization has set up. This paper mainly outlines aggregate plan using my company forecast. The company is known as Kinsey Ltd. It is a retailing company dealing with the distribution of electrical gadgets.
The Kinsey’s Aggregate Plan
Period (Months)
1
2
3
4
5
6
Forecast ($)
100
150
300
300
500
150
Output ($)
Regular
250
250
250
250
250
250
Overtime
Subcontract
Output forecast ($)
150
100
50
50
250
100
Inventory ($)
Beginning
0
150
250
200
150
0
Ending
150
250
200
150
0
100
Average
75
200
225
175
75
50
Banking ($)
0
0
0
0
100
0
The aggregate plan cost utilizing a level strategy:
Output:
Regular time = 5 x 1500 = 7500
Overtime = 8 x 0 = 0
Subcontract = 10 x 0 = 0
Inventory carrying cost = 3 x 850 = 2550
Backorders = 10 x 100 = 1000
TOTAL COST $11050
Strategy Applied
The strategy applies in developing the above aggregate plan is the chase strategy. The main reason why this strategy came into use is due to the fact the organization wanted to match demand with production levels. It has resulted in low inventory levels and backorders as it was being anticipated.
How the strategy integrates with Human Resources practices
This strategy has incorporated itself well into the Human resources practices since it embraces return on investment (ROI). ROI is one of the critical ideas that Kinsey business has at heart. With this type of aggregate plan in place, achieving the return on investment ideas will be easy since the strategy has reduced inventory levels and backorders.
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