Question

What factors are important in choosing the length of the planning horizon for aggregate planning?

Answer 1

The typical planning horizon is intermediate—3 to 18 months ahead. The objective of aggregate planning is usually to meet forecast demand while smoothing employment and driving down inventory levels over the planning period.

Aggregate planning is a method of creating an overall manufacturing plan that ensures uninterrupted production at your facility. Aggregated production plans are typically applied over a period of 3 to 18 months.

Aggregate planning is a marketing activity in which he makes an aggregate plan of the production process 6-18 months in advance to inform the management, such as the amount of materials.

Aggregate planning is important because it helps organizations optimize costs and production to meet long-term goals. Some of the specific ways it helps are: It helps the company to use its production capacity with maximum efficiency.

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