A manager is applying the transportation model of linear programming to solve an aggregate planning problem. Demand in period 1 is 100 units, and in period 2, demand is 150 units. The manager has 125 hours of regular employment available for $10/hour each period. In addition, 50 hours of overtime are available for $15/hour each period. If holding costs are $2 per unit each period, how many hours of regular employment should be used in period 1? (Assume demand must be met in both periods 1 and 2 for the lowest possible cost and that production is 1 unit per hour.)

Aggregate scheduling is a part of aggregate planning, which is the process of creating an approximate schedule for how an organization will operate over a period of time, typically 3–18 months. Aggregate planning covers all production activities at a facility, not just individual production runs or the manufacture of individual products. The goal of aggregate planning is to help a business fulfill forecasted demand at minimal cost.  Aggregate planning helps management decide when and how much to procure materials and other resources. It also helps determine: Outsourcing, Subcontracting,... Show more

Aggregate scheduling is a part of aggregate planning, which is the process of creating an approximate schedule for how an organization will operate over a period of time, typically 3–18 months. Aggregate planning covers all production activities at a facility, not just individual production runs or the manufacture of individual products. The goal of aggregate planning is to help a business fulfill forecasted demand at minimal cost. 

Aggregate planning helps management decide when and how much to procure materials and other resources. It also helps determine: Outsourcing, Subcontracting, Overtime, Hiring and firing, and Inventory. 
Aggregate planning can help improve efficiency and reduce waste by integrating labor, equipment, and material requirement parameters. For example, when demand and production are aligned together, production houses can buy only the required materials, which highly reduces the cost. 
Aggregate planning differs between services and manufacturing. For example, a massage therapy business offers services on demand, so they can't stockpile inventory. This means that any services that are not used are wasted. 

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