Strategic Applications of Aggregate Planning and Vehicle Routing Systems in Modern Organizations

Strategic Applications of Aggregate Planning and Vehicle Routing Systems in Modern Organizations

Aggregate planning gathers data on whatever an organization requires to operate, spanning from sales predictions through production and inventories, including customer relations, and afterward decides if the organization possesses excess resources or not adequate capacity at any particular moment. Organizations utilize the approaches to communicate objectives and establish strategies for achieving goals. The information aids in planning and the effective allocation of resources. To achieve objectives set within Exhibit 14.3, organizations need to utilize planning options for adequate resource allocation and examine whether they are in capacity for operation. The planning options that the organization can utilize within the setting include cross-training staff, part-time and casual labor, sub-contracting, temporary hiring, and inventory control. The training will facilitate aspects of customer relations and process management. Part-time and casual labor will be used for the daily manual work, and subcontracting will deal with external aspects of the exhibit. Since all these options require resources, inventory control shall help maintain sustainable operations.

Modern vehicle routing and dispatching software and systems are technologies used by transportation firms to create and establish the best optimal routes for their fleet in transit (Dündar et al., 2021). Managers use them to control goods and products in transit by monitoring the transportation using the software. They help drivers navigate the best possible routes for efficiency and effective time management. The technology facilitates the achievement of objectives and sustainable goals by reducing overall transportation costs and minimizing the risks of losses incurred during transport. It achieves sustainability by establishing the most profitable routes for managers to advise drivers to achieve business goals with minimum risks and costs (Moghdani et al., 2021). The software examines issues like route length depending on the time window allocated for a driver to minimize late deliveries or stale goods. They help managers plan the most efficient routes to reduce transportation costs by minimizing time wastage and fuel costs. They also enable managers to navigate restrictions and reduce fleet size depending on the vehicle’s capacity, enhancing asset life and efficiency.

References

Dündar, H., Ömürgönülşen, M., & Soysal, M. (2021). A review on sustainable urban vehicle routing. Journal of Cleaner Production, 285, 125444.

Moghdani, R., Salimifard, K., Demir, E., & Benyettou, A. (2021). The green vehicle routing problem: A systematic literature review. Journal of Cleaner Production, 279, 123691.

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Describe how organizations use aggregate planning options in Exhibit 14.3.

Explain how modern vehicle routing and dispatching software and systems can support sustainability goals and objectives.