Select a goods-producing organization and a service-providing organization of your choice. Suggest ways each organization can make aggregate planning decisions using the variables described in Exhibit 13.3 in the textbook.
Compare and contrast the operational and managerial impacts of the aggregate planning decisions in terms of customer satisfaction.
Aggregate planning decisions
Adidas is a globally recognized brand that has remained relevant for years. It is partly due to consumer satisfaction and partly due to its product innovation. The COVID-19 pandemic has affected many businesses, but the company has adopted the use of online platforms to boost sales and the supply chain. Optimizing their digital supply chain ensures that they meet consumer demands as they make profits. In their RFID tracking system, they have implemented the ‘click and collect’ as well as ‘ship from store’ features to allows consumers to purchase their products easily despite their location. For instance, in Russia, more than 450 stores have improved their digital presence by including images of different shoe styles as well as information about the size availability that has made it easy for consumers to get what they want. They make their aggregate planning decisions by using their analytical data to know which consumers prefer the online presence as well as the data to help in negotiations for product display in their stores (Hadida, 2020).
Netflix has an ecosystem that licenses and distributes content. It is a platform where people consume content. It also gives them the data they need to successfully provide content that consumers want. It has gained a competitive advantage by having consumer data in its blueprint and providing the most accurate original content. It uses data analytics to guide decisions in investments. Understanding consumer analytics has been relevant to understanding consumer behavior to improve content availability (Iglesias, 2020). They have established a culture of trust among their employees that ensure that they stay motivated to understand and satisfy consumer needs. Netflix has an ambidextrous structure that allows their team to work more efficiently despite the challenges they are facing. The aggregate planning decisions prioritize understanding consumer needs and efficient data analysis to improve results for their consumers. They have an AI system that uses an algorithm to improve on data results.
Hadida, A. L., Lampel, J., Walls, W. D., & Joshi, A. (2020). Hollywood studio filmmaking in the age of Netflix: a tale of two institutional logics. Journal of Cultural Economics, 1-26.
Iglesias, O., Ind, N., & Schultz, M. (2020). History matters: The role of history in corporate brand strategy. Business Horizons, 63(1), 51-60.
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