Aggregate Planning at Service-Oriented Firms Term Paper

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This creates a need to plan for the resources needed at any given time. This includes that there is a need to plan for the human resources necessary. This would be one of the needs of McDonald's, with restaurants needing to supply the human resources needed to meet consumer demand at all times. This includes all times of all days. This would be different for Dell, since human resources are needed to meet overall demand, but not on an ongoing basis. For example, a decreased amount of human resources on a given day would not limit the ability of Dell to meet production demand, since the decrease could be noted and action taken. This would allow overall demand to be met. In contrast, a decreased amount of human resources even for a short time would limit the ability of McDonald's to meet ongoing demand.

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Another issue for service-oriented firms is that demand for services is more difficult to predict than demand for products. This can be seen by considering the differences in predicting demand for Dell and for McDonald's. For Dell to manage their planning, they need to forecast sales on a weekly or monthly basis. In contrast, McDonald's has to forecast demand on a daily basis. Dell also only has to forecast overall sales, with it not necessary to consider sales in certain areas. In contrast, McDonald's has to forecast sales for every individual restaurant. These issues make it more difficult for McDonald's to effectively and accurately forecast demand.

This consideration of aggregate planning at McDonald's and at Dell shows some of the issues that make the process more complicated for a service-oriented firm such as McDonald's......

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