Aggregate Planning at Green Mills Harvard Case Solution & Analysis

Aggregate Planning at Green Mills

Problem Diagnosis

Green Mills Inc., which operates and owns many lumber mills in Northwestern United States, is currently considering expanding its operations to Chile in order to reduce the total costs associates with raw material procurement. Therefore, the management of the company wants to analyze the cost implications for the backward vertical integration through the analysis of the range of the aggregate production planning strategies including the chase, level and mixed production planning strategies.

Analysis

Question 1: Workforce & Production Schedule

The schedules for the workforce and the demand have been produced separately for the Chase, Level and the mixed strategy as shown in the separate excel spreadsheets. For the chase plan, two worker schedules have been created, one with overtime and the other without overtime. Similar is the case with the level plan and it is constant for the mixed plan. The calculations could be referred from the excel spreadsheet.

Question 2: Cost Comparison for three plans

The cost comparisons for the three plans are shown in the summary table below and based upon the total minimum costs, the most recommended option for the management is to go for the Level strategy..........................

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