Final answer:
Sales and operations planning fits into medium-term planning. Short-term planning covers a period from a day to six months. Hiring migrant workers as needed and laying them off after harvest is an example of just-in-time production. A hybrid production strategy combines approaches from multiple basic strategies. Direct labor costs, inventory holding costs, and backordering costs are relevant to the aggregate production plan.
Step-by-step explanation:
The sales and operations planning (S&OP) fits into the category of medium-term planning. It typically covers a time range of 3 to 18 months. S&OP involves aligning sales forecasts with production plans and inventory management to ensure the organization meets customer demand while optimizing resources.
The category of planning that covers a period from a day to six months, with daily or weekly time increments, is known as short-term planning. It involves creating production schedules and managing inventory levels based on current demand and available resources.
The production planning strategy that best describes the approach of hiring migrant workers as needed and laying them off once the crops are picked is called on-demand or just-in-time (JIT) production. JIT production focuses on minimizing inventory and producing goods or services only when there is a demand.
The term for a more complex production strategy that combines approaches from more than one basic strategy is called hybrid production strategy. In this approach, different elements from various production strategies are combined to create a tailored plan that meets the specific needs of the organization.
The three costs relevant to the aggregate production plan are:
- Direct labor costs: The cost associated with hiring and paying workers.
- Inventory holding costs: The cost of storing and managing inventory.
- Backordering costs: The cost incurred when a customer's order cannot be fulfilled immediately and needs to be fulfilled at a later time.