1) The document discusses aggregate planning and yield management in services. It provides examples of how these concepts are applied in industries like restaurants, hospitals, law firms, airlines, cruise ships, and Iberia airlines. 2) For a law firm example, the document forecasts demand for legal services under best, likely, and worst case scenarios and calculates the number of lawyers needed to meet the demand. 3) Yield management is described as allocating resources like airline seats to different fare classes to optimize revenue based on forecasts of passenger demand.

1. AGGREGATEAGGREGATE
PLANNING INPLANNING IN
SERVICES ANDYIELDSERVICES ANDYIELD
MANAGEMENTMANAGEMENT
Pablo de Olavide University, Seville. 6th March, 2015
Subject: Operations Management II
Students: Beatriz Piedras Martínez
Javier Ocaña Infante
María Nocete Luján

2. Aggregate planning in servicesAggregate planning in services

3. Cost ControlCost Control

4. RESTAURANTSRESTAURANTS

5. HOSPITALSHOSPITALS
Meet changing demand of patients by allocatingMeet changing demand of patients by allocating

6. NATIONAL CHAINS OF SMALLNATIONAL CHAINS OF SMALL
SERVICE FIRMSSERVICE FIRMS

7. MISCELLANEOUS SERVICESMISCELLANEOUS SERVICES

8. Brief ExampleBrief Example
Klasson and Avalon, a medium – size law firm
of 32 legal professionals, wants to develop
an Aggregate Plan for the next quarter. The firm
has developed 3 forecasts of billable hours for
the next quarter for each 5 categories of legal
services they provide. The 3 forecasts have
been named as ‘best, likely and worst’. If we
assume 40 – hour workweek and that a
100% of each lawyers’ hours are billed, we
obtain about 500 billable hours from each
lawyer this fiscal quarter.

10. Forecasted Demand for each ScenarioForecasted Demand for each Scenario
(Best, Likely, Worst)(Best, Likely, Worst)
Lawyers needed (workforce)Lawyers needed (workforce) =
Total hours/billable hours per lawyer for the quarter

11. Once we have forecasted the Workforce
needed for the quarter (or for any period of
time the wording of the exercise requires), we
need to follow the steps for ‘Chase Strategy’,
‘Level Strategy’ and ‘Mixed Strategy’ in
order to obtain the Total Costs for the period.
If the wording doesn’t say anything about which
strategy is going to be carried out, we have to
compute all the strategies in order to compare
the TC we obtain, and choose the less costly
strategy.

12. YIELD MANAGEMENTYIELD MANAGEMENT
AIRLINE INDUSTRYAIRLINE INDUSTRY
Passengers
that need to
be serviced
in all flights.
Schedule for
number of
flights on all
routes.
Personnel
required on
each plane
and site.
How many
seats to
allocate to
different fare
All of these factors make for a more complex aggregate planning
method
YIELDYIELD
MANAGEMENTMANAGEMENT

13. YIELD MANAGEMENTYIELD MANAGEMENT

14. Yield management example :Yield management example :
Cruise ship with maximum number of 1000
cabins.
Avarage number of cabins used  400
cabins.
Cabins are identical
 Price  1200€.

15. Yield management example:Yield management example:

16. Yield management example:Yield management example:

17. Yield management:Yield management:

18. Iberia example:Iberia example:

19. Iberia example:Iberia example: