Aggregate Planning Problem in the IQ Company Dissertation

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It is imperative to underscore the fact that laptop and desktop computers are currently being released by the IQ Company. This company has been performing this task through a contract system.

There are two categories of laptops that are considered to be most effective for use since they have become extremely popular among various users. These include the ten inches and 14 inches models.

These models of laptops have been manufactured with special computing configuration in mind. However, the most important factor to consider in the sale of these two laptop models is that they are mainly on high demand during the two major seasons namely fall and spring.

A company like IQ may find it quite cumbersome to predict the demand for either a laptop or desktop computer in years to come bearing in mind that such products are introduced in the market when the user experience has not been known.

In other words, it takes a considerable length of time for users to acquaint themselves with the new products before they can eventually share their opinions.

One of the reasons why estimating future demand may be cumbersome is the fact that high variance is usually included when manufacturing the laptop and desktop computers.

The demand for these computers on any given period has to be adjusted accordingly by the manufacturer. This is attained by making sure that the production period is modified using an optimal approach.

The demand for each of the computer product has to be assessed on a monthly basis so as to avoid under production or excess supply of the products. As such, there are quite a number of factors that determine the optimal rate of production.

These include the quantity of products that have been outsourced, the number of employees, the costs incurred for overtime, the ordinary cost of labor as well as the optimal cost. These factors are vital in determining the overall value or pricing of products manufactured by the company.

It is also vital to mention that this company mainly deals with the process of assembling various laptop parts before they can eventually be released into the market.

Therefore, this nature of production is largely affected by the capacity of employees who have been hired to work on a daily basis. If these employees fail to perform their duties as expected, then the company may find itself at a loss.

In addition, hiring more employees may sometimes not be the solution towards meeting labor demands. It is only the ability of the hired employees to perform that will make a difference in the entire process.

There are also cost implications for firing employees who are performing below the expectation of the company. Hence, the company should be keener during the process of hiring employees so that only the best and most capable workers are absorbed in the system.

Moreover, overtime hours among employees certified by IQ should be utilized to the optimum in order to cut down labor costs and other associated expenses.

On a final note, it is vital for the computing organization to have a good estimate of the demand peak season so that the right quantity is supplied to the market.

A built up inventory can also be utilized when anticipating the peak demand period. In other terms, the available inventory levels should be used in the most appropriate manner.

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IvyPanda. (2019, July 10). Aggregate Planning Problem in the IQ Company. https://ivypanda.com/essays/aggregate-planning-problem-in-the-iq-company/

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"Aggregate Planning Problem in the IQ Company." IvyPanda, 10 July 2019, ivypanda.com/essays/aggregate-planning-problem-in-the-iq-company/.

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IvyPanda. (2019) 'Aggregate Planning Problem in the IQ Company'. 10 July.

References

IvyPanda. 2019. "Aggregate Planning Problem in the IQ Company." July 10, 2019. https://ivypanda.com/essays/aggregate-planning-problem-in-the-iq-company/.

1. IvyPanda. "Aggregate Planning Problem in the IQ Company." July 10, 2019. https://ivypanda.com/essays/aggregate-planning-problem-in-the-iq-company/.


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IvyPanda. "Aggregate Planning Problem in the IQ Company." July 10, 2019. https://ivypanda.com/essays/aggregate-planning-problem-in-the-iq-company/.

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