AGGREGATE PLANNING:

“ Aggregate plan is a statement of production rates, work-force

levels and inventory holdings on estimates of customer requirements &

capacity limitations.”

Since Shamim & Company is a manufacturing co., so it’s aggregate

plan is also called “ production plan.”

Unit of plan:- Aggregate plan is expressed in terms of “no. of

cases.” Which are also called SKU (stock keeping units). K& 1 case = 24

bottles

PLANNING HORIZON:

Aggregate plan is mostly prepared for a period of one year, but

sometimes, it is also prepared for 3-4 years.

STRATEGY FOR AGGREGATE PLANNING:-

Shamim & co. follows “ chase-strategy” as it follows demand-

pattern-Demand for chamim & co.’s products is seasonal.

So due to “seasnality” fo demand & chasing ofdemand, the co;

adopts following alternativdes.

REACTUVE ALTERNATIVES

The reactive alternatives are the actions that are taken to cope with

demand requirement.

WORK FORCE ADJUSTMENT:

Company has 2-types of employees:

Employees at permanent basis.

Employees at contract basis

The employees at contract basis are hired & fired in peak & slack

seasons respectively.

WORK-FORCE UTILIZATION:
OVERTIME:

Normally there is not the tendency of over-time in Shamim & Co. as

management thinks that productivity of workers is reduced during over-

time.

UNDER TIME:

The permanent workers are also paid, the under time but the

workers on contract-basis are paid on the basis of working hours so under

time is not paid to them.

VACATION SCHEDULE:

Shamim & Company gives incentives for vacations in slack-season.

Vacations are given on the basis of labor-laws in Pakistan.

Company does not adopt aggressive alternatives, as co has not

complementary products creative pricing.

LINEAR PROGRAMMING:

Linear programming is not normally applied in Shamim & co. or if it

is applied, than at a very minimal level.

Objective Functions :

Maximize

p i = price per case

x i = No. of cases

i = 4-products of Pepsi, Mirinda, 7-up, Team

Constraints are in terms of budgeted resources & capacities.