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Aggregate Planning

Aggregate Planning

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Published by kevin punzalan

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Published by: kevin punzalan on Feb 19, 2009
Copyright:Attribution Non-commercial

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02/22/2013

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Aggregate PlanningAggregate Planning
 
Introduction: Short StoryIntroduction: Short Story
Each year, Jane Cramer, the plant manager atPolaroid’s Integral Film Assembly operation inWaltham, Massachusetts, struggles to identify themost efficient way to meet the forecasted sales of film. Janet’s plant is the only film assembly operationin the United States. (There is only one other Polaroidfilm assembly operation in the world, located in theNetherlands).Historically, annual sales of Polaroid film has followed acyclic pattern, with the maximum sales per monthtaking place just before Christmas time when retailoperations stock their shelves in anticipation of holiday sales. There is also another peak, althoughsomewhat smaller, in late spring and early summer,when customers purchase film for graduation,weddings, and smaller vacation.
 
Introduction: Short Story (cont’d)Introduction: Short Story (cont’d)
Four different types of film are assembled atthe Waltham plant. The assembly of film intothe cartridges for the Polaroid cameras is ahighly capital intensive process with a veryhigh fixed costs and relatively low variablecosts. As a result, Polaroid’s operation inWaltham, which includes approximately 470hourly employees, runs on three shifts, 24hours a day, five days a week. In addition,the workforce primarily consists of highlyskilled individuals who would be difficult toreplace.

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