12 Questions
What is the typical time horizon of aggregate planning?
2 to 12 months
What is the main goal of aggregate planning?
Utilize resources to satisfy expected demand
Which level of planning defines the capacity constraints for intermediate planning?
Long-term planning
What do intermediate decisions in planning relate to?
General levels of employment, output, and inventories
What is the focus of long-term planning decisions?
Product and service selection, facility size and location
How often are intermediate planning time increments usually set?
Monthly or sometimes quarterly
What is the time period covered by short-term planning?
One day or less to six months
What decisions do short-term decisions involve?
Scheduling jobs, workers, and equipment
What is the output of aggregate planning?
Production plan
What is the primary concern of aggregate planners?
Minimizing costs
What do aggregate planners aim to achieve over the entire planning horizon?
Achieve rough equality of demand and capacity
Why do aggregate planners try to achieve a balance between supply and demand?
Opportunity costs
Learn about aggregate planning, an intermediate range capacity planning technique used by organizations to effectively utilize resources and satisfy demand over a 2 to 12-month horizon. Understand its importance for dealing with seasonal fluctuations and achieving production goals.
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