Aggregate Planning at Crown Mirrors
Prerequisite Conceptual Understanding
- • Jay Heizer, et al., “Chapter 12: Aggregate Planning”, Operations Management, 9th Edition, Pearson Education, 2008
This caselet enables a discussion on the concept of Aggregate Planning in Operations Management. Crown Mirrors (Crown) located in Michigan was a successful manufacturer of decorative lamps. Due to increased fluctuations in demand, Felix Steve (Felix), the founder of Crown started following sophisticated forecasting system. He suggested his production in charge to take into account of all the seasonal and trend patterns while doing production planning. Felix estimated the costs of hiring or firing workers; using overtime; subcontracting; and holding inventory or running out of the product. Felix was not able to determine whether demands not met in the current month could be met later or whether the incomplete orders would be lost.
Expected Learning Outcomes
- • Basics of Aggregate Planning
- • Computing Production schedule for Crown
- I. What is Aggregate Planning?
- II. Find the production schedule Crown should follow under the various assumptions and policies, and detail the differences among these schedules.
The Teaching Note follows the specific Teaching Plan [Annexure (TN)-I]...............