Aggregate Planning Process
Aggregate plans define how resources can be best employed to meet market demand for the given products. The objective of an aggregate plan is to minimize production costs, make appropriate changes in production rates and workforce levels and to improve profits, customer service and utilization of resources. The process of aggregate planning is complex due to the number of variables that must be considered in the planning process. Figure 9.1 shows the relationship between the aggregate plan and other aspects of production. The concept of aggregation, goals for aggregate planning, forecasts of aggregate demand and interrelationships among decisions are the basic considerations for developing an aggregate production plan.
Figure : An Overview of Operations Planning and Scheduling System
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