Article

Aggregate planning today

Work Study 04/1995; 44(3):4-7. DOI: 10.1108/00438029510085339

ABSTRACT A firm must plan its manufacturing activities at a variety of levels
and operate these as a system. Aggregate planning is medium-range
capacity planning which typically covers a time horizon of anywhere from
three to 18 months. The goal of aggregate planning is to achieve a
production plan which will effectively utilize the organization's
resources to satisfy expected demand. Planners must make decisions on
output rates, employment levels and changes, inventory levels and
changes, back orders, and subcontracting. Aggregate planning determines
not only the output levels planned but also the appropriate resource
input mix to be used.

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