Aggregate Planning Goals

There are a number of goals that have to be satisfied simultaneously by the aggregate plan. Some of the important goals of aggregate planning are mentioned below:

1. Aggregate planning should contain information on the required level of output to be produced, inventory levels to be maintained and backlogs based on the business plan. For instance, in anticipation of a major promotional campaign, the business plan may call for an inventory buildup; the aggregate plan should provide appropriate production support.

2. The aggregate plan should utilize the facility's capacity in an efficient manner and the usage should be consistent with the organization's strategy. Capacity underutilization may lead to wastage of resources. One firm's strategy may be to operate at full capacity for efficient operations, so that the underutilization of capacity and wastage of resources are avoided.  Other firms that compete on the basis of flexible service to customers may maintain a capacity cushion to meet the sudden changes in the demand.

3. The company's objectives and its policies regarding its employees should be in line with its aggregate plan. For instance, one company may have a policy of providing stable employment especially in those fields where critical job skills are scarce. Therefore, it may not adopt an easy hire-and-fire policy. Another firm may hire and fire employees more readily based on output levels during the aggregate plan period.              

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