Supply Chain Management

Chapter 4 : Managing Demand and Supply in a Supply Chain

Aggregate Planning and its role in a Supply Chain

Aggregate Planning Process

Aggregate Planning Problem Aggregate Planning Strategies

Chase Strategy
Stable workforce Strategy
Level Strategy

Aggregate Planning Techniques

Cut and Try Method
Aggregate Planning Using Linear Programming

Managing Predictable Variability in a Supply Chain

Decisions Options in Varying Supply

Managing Capacity
Managing Inventory

Decision Options in Varying Demand

Demand for the Product
Product Margins
Cost of Holding Inventory.

Chapter Summary

In this chapter we discussed the process of managing demand and supply. We first studied the aggregate planning process and its importance in the supply chain. Later, we discussed the various aggregate planning strategies followed by businesses. The chase strategy, the stable workforce strategy and the level strategy were examined in detail.

The techniques used for solving aggregate planning problems were also studied. The cut and try method and transportation methods were discussed through the use of examples. We then examined the process of managing predictable variability, using various strategies for managing both supply and demand.

Next Chapter>>