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The Purpose of Aggregate Production Planning

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What is the purpose of aggregate production planning and when is it most useful?

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Solution Summary

This solution briefly defines aggregate production planning. It then explains some of the main purposes of aggregate production planning and when it is most useful.

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Before explaining the main purposes of aggregate production planning, it is good to note what aggregate production planning is. "Aggregate production planning is concerned with the determination of production, inventory, and work force levels to meet fluctuating demand requirements over a planning horizon that ranges from six months to one year." Some definitions of aggregate production planning have the time horizon ranging from as low as two months to ...

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