The business plan will include quizlet app

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The business plan will include quizlet app

Strategies for Meeting Demand If demand for a company's products or services are stable over time or its resources are unlimited, then aggregate planning is trivial. Demand forecasts are converted to resource requirements, the resources necessary to meet demand are acquired and maintained over the time horizon of the plan, and minor variations in demand are handled with overtime or undertime.

Aggregate production planning becomes a challenge when demand fluctuates over the planning horizon. For example, seasonal demand patterns can be met by: Producing at a constant rate and using inventory to absorb fluctuations in demand level production Hiring and firing workers to match demand chase demand Maintaining resources for high-demand levels Increasing or decreasing working hours overtime and undertime Subcontracting work to other firms Using part-time workers Providing the service or product at a later time period backordering When one of these is selected, a company is said to have a pure strategy for meeting demand.

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When two or more are selected, a company has a mixed strategy. The level production strategy, shown in Figure During periods of low demand, overproduction is stored as inventory, to be depleted in periods of high demand.

The cost of this strategy is the cost of holding inventory, including the cost of obsolete or perishable items that may have to be discarded. The chase demand strategy, shown in Figure During periods of low demand, production is cut back and workers are laid off.

During periods of high demand, production is increased and additional workers are hired. The cost of this strategy is the cost of hiring and firing workers. This approach would not work for industries in which worker skills are scarce or competition for labor is intense, but it can be quite cost-effective during periods of high unemployment or for industries with low-skilled workers.

Maintaining resources for high-demand levels ensures high levels of customer service but can be very costly in terms of the investment in extra workers and machines that remain idle during low-demand periods.

This strategy is used when superior customer service is important such as Nordstrom's department store or when customers are willing to pay extra for the availability of critical staff or equipment.

Professional services trying to generate more demand may keep staff levels high, defense contractors may be paid to keep extra capacity "available," child-care facilities may elect to maintain staff levels for continuity when attendance is low, and full-service hospitals may invest in specialized equipment that is rarely used but is critical for the care of a small number of patients.

Overtime and undertime are common strategies when demand fluctuations are not extreme.

the business plan will include quizlet app

A competent staff is maintained, hiring and firing costs are avoided, and demand is met temporarily without investing in permanent resources. Disadvantages include the premium paid for overtime work, a tired and potentially less efficient work force, and the possibility that overtime alone may be insufficient to meet peak demand periods.

Subcontracting or outsourcing is a feasible alternative if a supplier can reliably meet quality and time requirements. This is a common solution for component parts when demand exceeds expectations for the final product.

The subcontracting decision requires maintaining strong ties with possible subcontractors and first-hand knowledge of their work.

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Disadvantages of subcontracting include reduced profits, loss of control over production, long lead times, and the potential that the subcontractor may become a future competitor. Using part-time workers is feasible for unskilled jobs or in areas with large temporary labor pools such as students, homemakers, or retirees.

Part-time workers are less costly than full-time workers--no health-care or retirement benefits--and are more flexible--their hours usually vary considerably.

the business plan will include quizlet app

Part-time workers have been the mainstay of retail, fast-food, and other services for some time and are becoming more accepted in manufacturing and government jobs. Japanese manufacturers traditionally use a large percentage of part-time or temporary workers.

Part-time and temporary workers now account for about one third of our nation's work force. The temp agency Manpower, Inc.

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You’ll find detailed overviews of what to include within each section by looking at sample business plans and going to online sources.

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Your business plan should include: The Executive Summary: This is a concise 2- to 4-page summary illustrating the key points of what will be detailed in each section of the ensuing business plan.

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The Seven Stages of Business Life. 1.

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Seed Stage. The seed stage of your business life cycle is when your business is just a thought or an idea.

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This is the very conception or birth of a new business. Step To Creating A Business Plan Creative Learn, To Write A Business Plan, Conduct Market Research, Plan, Profit.

This Easy Guide Will Walk, Through, Necessary Steps To Creating Collections One of the maximum essentially attributes of writing commercial enterprise plans is including flexibility. A section of the business plan that offers information on how a product will be produced or a service provided, including descriptions of the new firm's facilities, .

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