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A warehouse is facing increasing customer dissatisfaction due to incorrect inventory data combined with lack of...

A warehouse is facing increasing customer dissatisfaction due to incorrect inventory data combined with lack of training for its work force. The warehouse workforce is 90% made up of temporary workers who are from different agencies and on-call workers. How can the company improve its inventory integrity through aggregate planning?

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Answer #1

Aggregate planning is a concept to analyze and maintain optimum production schedule in order to meet the demand and have minimum overhead. It will help to improve integrity by:

  • Analyzing and predicting the temporary workforce requirement which will result in cost optimization
  • Reduce the excess investment on inventory and avoiding capital blockage
  • Ensure that schedules are met as per requirement due to advance availability of information
  • It will help to maximize the utilization of production capacity
  • It will help to increase morale and motivation of employees at work
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