aggegate planning 2016.pdf

7/25/2019 Aggegate planning 2016.pdf

1/78

Aggregate Planning

Prof Indrajit Mukherjee


2/78

Dependent and Independent Demand

Independent Demand

100 tables

Dependent Demand

100 x 1 tabletops

100 x 4 table legs


3/78

Demand (Priority) Resources(Capacity)

Why Plan?

To satisfy customer demand, ensure the availability of resources


4/78

How do you cope with fluctuations indemand?

Absorb

Demand Adjust output tomatch demand

Change

demand


5/78

Absorb demand

Keep output level

Make tostock

Makecustomer

wait

Part finished,

Finished Goods, or

Customer Inventory

Queues

Backlogs

Haveexcess

capacity


6/78

6

Adjust output tomatch demand

Hire Fire

TemporaryLabour

Lay-off

Overtime

Subcontract

Short time

3rd party work


7/78

Change demand

Change pattern of demand

Develop alternative products and/orservices


8/78

Advertising, pricing & product promotion(shifting demand into other time periods)

Counter cyclicbut similar type of products.Similar products with negatively correlated

demands, e.g. Snow blowers and Lawn

Mowers. AC pumps and Heater pumps

Partnering with suppliers to reduce informationdistortion along the supply chain

Prior Reservation systems

Demand Influencing Tactics


9/78

Ways of reconci ling capacity and demand

Capacity

Demand Demand

Capacity

Demand

Capacity


10/78

Masterproduction

schedule andMRP

systems

Detailedwork

schedules

Processplanning and

capacitydecisions

Aggregateplan for

production

A Holistic View of Planning

Productdecisions

Demandforecasts,

orders

Marketplaceand

demand

Research

and

technology

Rawmaterialsavailable

Externalcapacity

(subcontractors)

Workforce

Inventoryon

hand

Capacity

Demand

Lecture Slides by Indrajit SJMSOM


11/78

Pull and push philosophies of planning andcontrol

CENTRAL OPS. PLANNING AND CONTROL SYSTEM

Workcentre

DEMANDWorkcentre

Workcentre

Workcentre

Instruction onwhat to makeand where to

send it

FORECASTOR

PULL CONTROL

Workcentre

Workcentre

Workcentre

Workcentre DEMAND

Request Request Request Request

Delivery Delivery Delivery Delivery

PUSH CONTROL


12/78

MRPII

Manufacturing Resource Planning

An expanded system for determining manufacturing

resource requirements and for scheduling production.

Make sure you have enough parts when you needthem

Take future demands, factor in lead times (time

phase), compare to on-hand inventory, place

order

Determine order size and timing


13/78

Core MRP II (Manufacturing Resource Planning)

Aggregate ForecastAggregate Production

Plan

Detailed Forecast Master ProductionSchedule

Rough-Cut CapacityPlanning

Material

RequirementsPlanning

Capacity

RequirementsPlanning

Production Activity

Control

PASSENGER CAR FAMILY

(Independent Demand)

PASSENGER CAR MODE

PASSENGER CAR PARTS

(Dependent Demand)

Resource requirement

Planning


14/78

THE BIG PICTURE

A production and/or purchasing

schedule for Dependent DemandItems

(parts / components)

Material Requirement Plan(MRP)

Master Production Schedule(MPS)

A production schedule for IndependentDemand Items(end items / parent items)

The demand for this stuffis dependent on

the independent demand for this.


15/78

Production Plan

Months January February

Aggregate Production Plan 1,500 1,200(Shows the totalquantity of amplifiers)

Weeks 1 2 3 4 5 6 7 8Master Production Schedule(Shows the specific type andquantity of amplifier to beproduced

240-watt amplifier 100 100 100 100

150-watt amplifier 500 500 450 45075-watt amplifier 300 100


16/78

Demand Patterns

A pattern plus random influences Lumpy because of production lots


17/78

Dickson Chiu 2006

Why demand becomes lumpy

Time

Time

Orderpoint

Orderpoint

Le

vel

Level

0

0

Production orderrelease

Orderplacement

(a) Field inventory (Finished product in warehouse)

(b) Factory inventory (Finished product at plant)

Time

Order

point

Level

0

Purchase orderrelease

(c) Component inventory (Supply stocks at plant)


18/78

Dependent vs Independent Demand

Time

Time Time

Time

Demand

Demand

Stable demand Lumpy demand

Amountonhand

Amounto

nhand

Safety stock


19/78

Historical Perspective

mrp material

requirements

planning

MRP II Manufacturing

Resource Planning

ERP- Enterprise

Resource Planning


20/78

ERP

Sales and

distribution

Financial

accounting

Financial

controlling

Fixed assets

management

Human resources Work flow Industry solutions Materials

management

Production

planning (including

MRP and CRP)

Quality

management Plant maintenance Project systems


21/78

Aggregate Plan

*Aggregate Plan: A statement of a companys production rates,

workforce levels, and inventory holding based on estimates

of customer requirements and capacity limitations

Service Industry Staffing Plan

Manufacturing Industry Production Plan

*Decisions made at a product family (not SKU) level


22/78

Product Classification Hierarchy

Product typePump

Family ASmall pumps

Family BMedium pumps

Family CLarge pumps

S1 S2 S3 M1 M2 M3 L1 L2 L3


23/78

Aggregate

Farm tools:

Shovels

Spades

Forks

Aggregate by similar characteristics

Generic tool, call itShovel

Same characteristics?


24/78

13-5

Aggregate Planning: Objectives and

Approaches

Objectives:

Match aggregate Capacity with aggregate Demand(Effectiveness)

Minimize Costs (Efficiency)

Demand(Priority)

Supply (Capacity:(Machine, Manpower;Material and Products in

Inventory)


25/78

Objectives of capacity planning and control

Step 1 - Measure aggregatecapacity and demand.

Step 2 - Identify the alternativecapacity plans.

Step 3 - Choose the most

appropr iate capacityplan.

Time

Estimate of current capacity

Forecast demand

Aggregatedoutput


26/78

Strategies for Adjusting Capacity

Level production Producing at a constant rate and

using inventory to absorb

fluctuations in demand Chase demand

Hiring and firing workers tomatch demand

Subcontracting demand

Maintaining resources forlowest-demand levels and subcontact in case of higherdemand

Overtime and under-time Increasing or decreasing

working hours

Part-time workers Hiring part time workers to

complete the work

Backordering Providing the service or product

at a later time period


27/78

Ways of reconci ling capacity and demand

Level capacity

Capacity

Demand

Chase demand

Demand

Capacity

Demandmanagement

Demand

Capacity


28/78

Pure Aggregate Strategies


29/78

Example

Youve started a newcompany. Youve developed 2

production plans:

Month Forecast Plan 1 Plan 2

Jan 900 900 800Feb 700 700 800

Mar 800 800 800

You estimate 1 worker can make 100 units per month.

Which plan do you use? How many workers do you hire?How do you meet demand?


30/78

Level Planning

Month Expected Demand Production DaysDemand Per Day

(computed)

Jan 900 22 41

Feb 700 18 39

Mar 800 21 38

Apr 1,200 21 57

May 1,500 22 68

June 1,100 20 55

6,200 124

= = 50 units per day6,200

124

Averagerequirement =

Total expected demand

Number of production days


31/78

Level Production Planning Strategy

70

60

50

40

30

0 Jan Feb Mar Apr May June = Month

22 18 21 21 22 20 = Number of working days

Productionratep

erworkingday

Level product ion using averagemonthly forecast demand

Forecast demand



32/78

Aggregate Production Planning

Production rate: quantity of product produced perunit of time (autos/day).

Workforce level: number of workers required to

meet a specific level of output.

Ending Inventory Position: unsold units carried

over from one period to the next.

Ending inventory for any period = opening inventory + product ion demand= _____ + _____ ____= _____ units


33/78

Aggregate Planning

Aggregate Plans(1) Production Planning

(2) Resource Requirement planning [e.g., Labor, material] Plan

(Typically these two are generated simultaneously)

Purpose is to specify the optimal combination of production rate,

the workforce level, and inventory-on-hand

Given the demand forecast Ft for each period t in the planninghorizon over T periods, determine the production rate Pt,

Inventory level It, and workforce level Wt for periods t = 1, 2, , T,

that minimizes the relevant costs over the planning horizon (T).


34/78

Aggregate Planning Approach

1. Trial and Error Approach

2. Mathematical Approaches

a) Linear Programming

b) Search Heuristics



35/78

The Aggregate Production Plan

Consider the following aggregate demand forecast:

The plan is stated in the common unit of capacity direct labor

hours

Period Q1 Q2 Q3 Q4

Forecasted Demand (D) 5,000 0 20,000 5,000

Aggregate Production (AP)


36/78

Suppose we want to try to match demand:

Period Q1 Q2 Q3 Q4Forecasted Demand (D) 5,000 0 20,000 5,000

Aggregate Production (AP) 5,000 0 20,000 5,000

The Aggregate Chase ProductionPlan



37/78

Costs of Maintaining and Changing Production

Levels

Costs of keeping production steady:

Cc -- Inventory Holding cost ($ / unit / quarter)

Cb -- Backorder cost ($ / unit / quarter)

Costs of changing production

CH -- Hiring cost ($ / Worker) CF -- Firing cost ($ / Worker)

Also need to worry about:

Cw -- Wage rate ($/unit)


38/78

Projected Available Balance is simply the estimated ending

inventory for each period



Projected Available Balance (EI) 0 0 0 0 0

Workers 10




39/78

The # workers needed is based on the planned production and

average worker productivity here, say 500 Item

Produced/Worker/Quarter




Workers 10 10 0 40 10




40/78


For our example, the wage rate is $ 10/Item

Period Q1 Q2 Q3 Q4




Workers 10 10 0 40 10

Wages Cost 50,000 0 200,000 50,000

Hiring Cost

Firing CostHolding Cost

Backorder Cost

Total Cost



41/78

The hiring and firing costs are $ 2000 and $ 500, respectively

Period Q1 Q2 Q3 Q4




Workers 10 10 0 40 10

Wages Cost 50,000 0 200,000 50,000

Hiring Cost 0 0 80,000 0

Firing Cost 0 5,000 0 15,000

Holding Cost

Backorder Cost

Total Cost




42/78

Holding and backorder costs are $ 1 and $ 3 /per unit/Quarter,

respectively




Workers 10 10 0 40 10

Wages Cost 50,000 0 200,000 50,000


Firing Cost 0 5,000 0 15,000

Holding Cost 0 0 0 0

Backorder Cost 0 0 0 0

Total Cost




43/78

Which gives us a projected cost of $ 400,000 for the year

Period Q1 Q2 Q3 Q4


Aggregate Production (AP) 5,000 0 20,000 5,000Projected Available Balance (EI) 0 0 0 0 0

Workers 10 10 0 40 10

Wages Cost 50,000 0 200,000 50,000


Firing Cost 0 5,000 0 15,000

Holding Cost 0 0 0 0

Backorder Cost 0 0 0 0

Total Cost 50,000 5,000 280,000 65,000

400,000




44/78

Chase, Level, & Mixed Strategies

This example is the first of the two "pure" strategies

Chase strategy: make only as much as you can sell

The other pure strategy has a different cost structure Level strategy: maintain a steady production rate

In reality, a firm's strategy will be a combination or mixed

strategyof chase and level


45/78

A level strategy will absorb fluctuations in demand through

fluctuations in inventory

Period Q1 Q2 Q3 Q4

Forecasted Demand (D) 5,000 0 20,000 5,000Aggregate Production (AP) 7,500 7,500 7,500 7,500

Projected Available Balance (IP) 0

Workers 10

Wages Cost

Hiring Cost

Firing Cost

Holding Cost

Backorder Cost

Total Cost




46/78




Aggregate Production (AP) 7,500 7,500 7,500 7,500

Projected Available Balance (IP) 0

Workers 10 15 15 15 15

Wages Cost

Hiring CostFiring Cost

Holding Cost

Backorder Cost

Total Cost




47/78





Projected Available Balance (EI) 0 2,500

Workers 10 15 15 15 15

Wages Cost


Holding Cost

Backorder Cost

Total Cost




48/78





Projec ted Available Balance (IP) 0 2,500 10,000

Workers 10 15 15 15 15

Wages Cost


Holding Cost

Backorder Cost

Total Cost




49/78





Projected Available Balance (IP) 0 2,500 10,000 -2,500 0

Workers 10 15 15 15 15

Wages Cost


Holding Cost

Backorder Cost

Total Cost




50/78





Projected Av ailable Balance (IP) 0 2,500 10,000 -2,500 0

Workers 10 15 15 15 15

Wages Cost 75,000 75,000 75,000 75,000

Hiring Cost 10,000 0 0 0

Firing Cost 0 0 0 0

Holding Cost 2,500 10,000 0 0

Backorder Cost 0 0 7,500 0

Total Cost 87,500 85,000 82,500 75,000

330,000


Holding and backorder costs are Rs 1 and Rs 3/AP/Quarter, respectively

Holding costs - charged on inventory at the end


51/78

Subcontracting

Advantages:

No excess capacity

Level production

Disadvantage:

Costs of subcontracting

Meet demand bysubcontracting



52/78

Subcontracting Planning

Month Expected DemandProduction

DaysDemand Per Day

(computed)

Jan 900 22 41

Feb 700 18 39

Mar 800 21 38

Apr 1,200 21 57May 1,500 22 68

June 1,100 20 55

6,200 124

Minimum requirement = 38 units per day



53/78

Subcontracting Planning

70

60

50

40

30

0 Jan Feb Mar Apr May June = Month

22 18 21 21 22 20 = Number of working days

Productionrateperworkingday

Level productionusing lowest

monthly forecast

demand

Forecast demand

Combination or Mixed Strategy


54/78

Combination or Mixed Strategy

Demand is matched to some extent , production is partially smoothenedIn peak period some subcontracting take place

Mi d O i l S U i LPP


55/78

Mixed Optimal Strategy Using LPP

Hiring cost = $100 per worker

Firing cost = $500 per worker

Inventory carrying cost = $0.50 pound per quarter/item

Production per employee = 1,000 pounds per quarter

Beginning work force = 100 workers

QUARTER SALES FORECAST

Spring 80,000

Summer 50,000

Fall 120,000

Winter 150,000

A candy company makes variety of candies in three factoriesworldwide. Its line of chocolate candies exhibit highly seasonal

demand pattern with peak during winter, and valley during summer.Given the cost and quarterly sales forecast, determine a suitablecost effective production Plan.


56/78

General Linear Programming (LP) Model

LP gives an optimal solution, but demand andcosts must be linear

Let

Wt= workforce size for period t Pt =units produced in period t

It =units in inventory at the end of period t

Ft =number of workers fired for period t

Ht= number of workers hired for period t


57/78

whereH

t= # hired for period t

Ft

= # fired for period tIt

= inventory at end

of period tP

t= units produced

in period tW

t= workforce size

for period t

Minimize Z = $100 (H1 + H2 + H3 + H4)

+ $500 (F1 + F2 + F3 + F4)+ $0.50 (I1 + I2 + I3 + I4)

Subject to

P1 - I1 = 80,000 (1)

Demand I1 + P2 - I2 = 50,000 (2)

constraints I2 + P3 - I3 = 120,000 (3)I3 + P4 - I4 = 150,000 (4)

Production 1000 W1 = P1 (5)

constraints 1000 W2 = P2 (6)

1000 W3 = P3 (7)

1000 W4 = P4 (8)100 + H1 - F1 = W1 (9)

labour/Work force W1 + H2 - F2 = W2 (10)

constraints W2 + H3 - F3 = W3 (11)

W3 + H4 - F4 = W4 (12)

APP Mixed Optimal Strategy Using LPP

G li d f l ti f A t


58/78

Generalized formulation for Aggregate

Planning Problems using Linear Programming

Dt the forecasts of demand for aggregate units for period t, t = 1 T

nt number of units that can be made by one worker in period t

CtP cost to produce one unit in period t

CtW cost of one worker in period t

Ct

H cost to hire one worker in period t

CtL cost to layoff one worker in period t

CtI cost to hold one unit in inventory in period t

CtB cost to backorder one unit in period t

Wt number of workers available in period tPt number of units produced in period t

It number of units held in the inventory at the end of period t

Ht number of workers hired in period t

Ft number of workers fired in period t

known info

decision variables


59/78

Solver

Example LP Model Cost$32,00

0

Beg Wkforce 100 Beg Inv. 0 Firing cost $500Units/wker 1000 Inv. Cost $0.50 Hiring cost $100

Qtr Demand Production Inventory Wkers Needed Wkers Hired

Wkers

Fired

Demand

Constraint

Production

Constraint

Wkforce

Constrai

nt

1 80,000 80,000 0 80 0 20 80,000 80,000 802 50,000 80,000 30,000 80 0 0 50,000 80,000 803 120,000 90,000 0 90 10 0 120,000 90,000 904 150,000 150,000 0 150 60 0 150,000 150,000 150

Total 400,000 400,000 30,000 70 20

Note: LP approach ignores Economic Lot Sizing policy for production run

Solve

APP (Capacity Constraint) by the Transportation


60/78

APP (Capacity Constraint) by the TransportationMethod (A Special form of LPP)

1 900 1000 100 500

2 1500 1200 150 5003 1600 1300 200 500

4 3000 1300 200 500

Regular production cost per unit $20

Overtime production cost per unit $25Subcontracting cost per unit $28

Inventory holding cost per unit per period $3

Beginning inventory 300 units

Unused capacity cost $0

No Backorder Allowed (in this example)

EXPECTED REGULAR OVERTIME SUBCONTRACT

QUARTER DEMAND CAPACITY CAPACITY CAPACITY

(Assumed Cost & Constraint fuct ion are Linearand nobackorderor change in level of worker)


61/78

Network Diagram

Source 1

Source 2

Source 3

Source n

.

.

.

Destination 1

Destination 2

Destination 3

Destination m

.

.

.

Supply

S1

S2

S3

Sn

Demand

D1

D2

D3

Dm

c11

c12c13c1m

c21c22

c23c2mc31

c32c33

c3m

cn1cn2

cn3

cnm


62/78

In general, a transportation problem is

specified by the following information:

A set of m supply points from which a good is

shipped. Supply point ican supply at most si units.

A set of n demand points to which the good is

shipped. Demand pointjmust receive at least di

units of the shipped good.

Each unit produced at supply point iand shipped

to demand pointjincurs a variable cost of cij.


63/78

A transportation problem is specified by the

supply, the demand, and the shipping costs.Relevant data can be summarized in a

transportation table given below.

Fr o m To

Ci t y 1 Ci t y 2 Ci t y 3 Ci t y 4 Su p p l y ( M i l l i o n

k w h )

P la n t 1 $8 $6 $10 $9 35

P la n t 2 $9 $12 $13 $7 50

P la n t 3 $14 $9 $16 $5 40

D em a n d ( M i l l io n

k w h )

45 20 30 30

Solution


64/78

Solution

Decision Variables

Powerco must determine how much power is sntfrom each plant to each city soxij = Amount ofelectricity produced at plant iand sent to cityj

x14 = Amount of electricity produced at plant 1 and sentto city 4

Constraints A supply constraint ensures that the total quality

produced does not exceed plant capacity. Each plantis a supply point.

A demand constraint ensures that a locationreceives its demand. Each city is a demand point.

Since a negative amount of electricity can not beshipped allxijs must be non negative

Method for Handling Supply Not


65/78

Method for Handling Supply Not

Equal to Demand

When supply does not equal demand, you can use

the idea of a slack variable to handle the excess.

A slack variable is a variable that can be incorporated

into the model to allow inequality constraints tobecome equality constraints.

If supply is greater than demand, then you need a slack

variable known as a dummy destination.

If demand is greater than supply, then you need a slackvariable known as a dummy source.


66/78

Powerco Solution

LP Formulation of the ProblemMinZ= 8x11+6x12+10x13+9x14+9x21+12x22+13x23+7x24

+14x31+9x32+16x33+5x34

S.T.: x11+x12+x13+x14 = 30

x14+x24+x34 >= 30

xij >= 0 (i= 1,2,3; j= 1,2,3,4)

Farnsworth Tire Company


67/78

Farnsworth Tire Company developed data that relates to production,demand, capacity, and cost at its West Virginia plant. The data is providedbelow:

Sales Period

Mar. Apr. MayDemand 800 1000 750

Capacity

Regular 700 700 700

Overtime 50 50 50

Subcontract 150 150 130

Beg. Inv 100 tires

Cost

Regular time $40/tire

Overtime $50/tire

Subcontract $ 70/tire

Carrying cost $2/tire/month

Backorder cost $ 4/tire/month (Solve the problem without thisfirst, and then with backorder)

Backorder is not a viable alternative for this company. Give an initialsolution to the company and check if its optimal (use u-v method).

Solution (Assumed Cost & Constraints Linearity and no


68/78

( y

backorder or change in level of worker)

Supply From Period 1 Period 2 Period 3DummyCapacity

TotalCapacity

Avai lable

Beg Inv 100

Period 1

Reg Time 700

Overtime 50

Subcontract 150

Period 2

Reg Time X 700

Overtime X 50

Subcontract X 150

Period 3

Reg Time X X 700

Overtime X X 50

Subcontract X X 130

Total Demand 800 1000 750 230 2780

Initial Solution= $105900 and optimal is $105700 (without backorder)

PERIOD OF USEPERIOD OF Unused


69/78

PRODUCTION 1 2 3 4 Capac ity Capac ity

Beginning inventoryi i+h i+2h i+3h I

1 Regularr r+h r+2h r+3h R1

Overtime

o o+h o+2h o+3h O1

Subcontracts s+h s+2h s+3h S1

2 Regularr+b r r+h r+2h R2

Overtimeo+b o o+h o+2h O2

Subcontracts+b s s+h s+2h S2

3 Regularr+2b r+b r r+h R3

Overtimeo+2b o+b o o+h O3

Subcontracts+2b s+b s s+h S3

4 Regularr+3b r+2b r+b r R4

Overtimeo+3b o+2b o+b o O4

Subcontracts+3b s+2b s+b s S4

Unmet Demand

D1 D2 D3 D4

Demand of

period 1 is

produced/

satisfied in

period 2.Addition

cost of

back-

ordering

(loss of

goodwill,

cost ofexpediting

etc is

added.

h i blDummy Demand


70/78

The Transportation Tableau

Unused

PERIOD OF PRODUCTION 1 2 3 4 Capacity Capacity

Beginning 0 3 6 9 0

Inventory 300 300

Regular 600 300 100 0 1000

Overtime 0 100 0 100

Subcontract 500 0 500

Regular 1200 1200

Overtime 150 150

Subcontract 350 150 0 500

Regular 1300 1300

Overtime 200 200

Subcontract 500 500

Regular 1300 1300

Overtime 200 200

Subcontract 500 500

Demand 900 1500 1600 3000 750 7750

1

2

3

4

PERIOD OF USE

20 23 26 29

25 28 31 34

28 31 34 37

20 23 26

25 28 31

28 31 34

20 23

25 28

28 31

20

25

28

yBalanced Problem

M

High Costsay 9999if usingsolver or

puttingextremelylargenumberinto thecost ofproducingthat willforce thevalue toequalzero

No backorder allowed

InitialBasic

Feasible

Solution(Vogels,LC, orNWC)andthen

Simplex,Steep-ing

Stone orU-V

method

Determine a BFS for the below Production Plan. Is the BFS also optimal?-Home

Exercise


71/78

2007 Pearson Education

Exercise

Transportation Tableau for Tru-Rainbow Company


72/78

There are three basic methods to find the

starting basic feasible solution (bfs) for a

balanced TP problem

Northwest Corner Method

Minimum Cost Method

Vogels Approximation Method


73/78

The minimum cost method uses shipping

costs in order come up with a BFS that hasa lower cost.

To find the BFS (basic feasible solution) by

the Minimum Cost method:

Find the decision variable with the smallest

shipping cost (xij). Then assignxij its largest

possible value, which is the minimum of si and

dj


74/78

Next, cross out row iand columnjand reduce

the supply or demand of the noncrossed-out

row or column by the value ofxij.

Choose the cell with the minimum cost of

shipping from the cells that do not lie in a

crossed-out row or column and repeat the

procedure.

Often the minimum cost method may yield a

costly BFS.

Vogels approximation method for finding a bfsusually avoids extremely high shipping costs.

Simplex in Solver: Integer Solutions


75/78

Simplex in Solver: Integer Solutions

Property

If all the supplies and demands have integer

values, then the transportation problem with

feasible solutions is guaranteed to have an

optimal solution with integer values for all itsdecision variables.

This implies that there is no need to add restrictionson the model to force integer solutions.

Home Exercise


76/78


77/78

Aggregate Planningfor Services

1. Most services cant be inventoried

2. Demand for services is difficult to predict

3. Capacity is also difficult to predict

4. Service capacity must be provided at theappropriate place and time

5. Laboris usually the most constrainingresource for services

Lecture Slides of Indrajit Mukherjee, SJMSOM

Daily demand profile


78/78

6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00

Number ofcustomers

Daily demand profile

Core shift team 1 Core shift team 2

PartTime

PartTime

Part-

time

Staff scheduling

Figure Chase capacity strategy for a fast-food restaurant

Time

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