Allocating Resources at Planning Plus Inc. (Scenario)
Management from all levels of Planning Plus Inc. (PPI) has been making decisions about how to best accomplish next year's organizational goals. The production department has been making numerical plans to project such items as person-hours per machine, capacity usage, and production volume. Accounting has been trying to determine the production quantity at which total revenues will equal total costs. Purchasing has been establishing delivery dates for raw materials that meet the weekly inventory requirements of the production department. Finally, the marketing department has been planning the introduction of a new product. Marketing is essentially using a bar graph that displays time on the horizontal axis and activities to be completed on the vertical axis.
When purchasing establishes delivery dates for raw materials that meet the weekly inventory requirements of the production department, they are using which resource allocation technique?
◦ budgeting
◦ scheduling
◦ breakeven analysis
◦ linear programming
◦ benchmarking