On the other hand, in the stable workforce strategy, the output is varied by changing the work hours through flexible work arrangements. In the level strategy, a stable workforce which works at a constant output rate is maintained. According to Chase, et al. the “shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs, and lost sales” (2005).Since production planning strategies involve demand forecasting, production planning and work scheduling, an activity where it can be applicable is in buying groceries. One must have an idea of his needs either for the week or month, depending on how often one goes to the grocery. He has to know his level of consumption of grocery items for a certain period of time to ascertain how many of such items he will buy.
My organization is a T-shirt manufacturing firm. The material requirements planning systems (MRPs) are used in our organization. First, we get orders from customers and forward these data to the production department. The production department then comes up with a production schedule to meet delivery requirements. The purchasing department is also furnished a copy of the data on the orders to determine the amount of raw materials to order. The company has a bill of materials on hand which gives information on the amount of materials needed to produce the goods ordered. My company also makes use of an inventory record file which is always kept updated
An advantage of the MRP is that the company is able to closely monitor and manage its inventory of raw materials and finished goods. The bill of materials makes it easier to specify the amount of raw materials needed to complete the orders. The major drawback of the MRP is that it requires accurate data. Another disadvantage of the MRP is that it only considers the materials and not the production capacity nor the conditions in the work area.