What are some key issues to consider when picking an aggregate unit of analysis?
Answer to relevant QuestionsHow can aggregate planning be used in an environment of high demand uncertainty? What are some product lines that use common parts across many products? What are the advantages of doing this? In what way can improper incentives lead to a lack of coordination in a supply chain? What countermeasures can be used to offset this effect? Discuss how various costs for the supermarket change as it decreases the lot size ordered from Proctor & Gamble. Consider a firm like Zara that has developed production capabilities with very short replenishment lead times. Do you think this capability is more valuable for its online operations or its store operations? Why?
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