Question

Describe aggregate planning and aggregate planning strategy?

Answer 1

Aggregate planning is a process used in operations management to plan the production of goods and services. It is a medium-term capacity planning technique used to determine the necessary resource capacity to meet expected demand. Aggregate planning strategies involve analyzing the demand for a product or service and then determining the best way to meet that demand. This includes determining the optimal production rate, inventory levels, and workforce size. Aggregate planning strategies can involve a combination of strategies such as level production, chase demand, and mixed strategies. Level production involves producing a constant rate of output over a period of time, while chase demand involves adjusting production to match demand. Mixed strategies involve a combination of both level production and chase demand.