Table of content
Abstract
Aggregate planning is the process of increasing, analyzing, and maintaining groundwork, estimated plan of the overall operations of an organization. The aggregate plan generally includes targeted sales forecasts, construction levels, inventory levels, and customer backlogs. This plan is intended to satisfy the demand forecast at a least cost.
In simple terms, aggregate planning is an attempt to balance power and demand in such a way that costs are minimized. The word "aggregate" is used because scheduling at this level includes all resources "in the aggregate;" Aggregate resources may possibly be the total number of workers, hours of machine time, or tons of raw materials.
Aggregate planning does not discriminate among sizes, colors, features, and so forth. When units of aggregation are difficult to determine equivalent units are usually determined. These similar units could be based on value, cost, worker hours, or some identical measure.
Aggregate planning is considered to be intermediate-term in nature. Therefore, most aggregate plans cover a period of three to 18 months.
Introduction
This term paper covers issues concerned with how a firm integrates information from and about its customers, internal and external to the firm, into the manufacturing planning and control system. Aggregate planning is responsible for input from demand management process, which includes activities that vary from determining or estimating the demand from customer, through converting definite customer orders into promised delivery dates, to helping balance demand with supply.
Aggregate planning in business is defined as the process of development, analytics and maintenance of a schedule for the company overall operations. The planned output levels, targeted sales and future inventory levels are taken into account while preparing an aggregate plan.
Aggregate production planning is the method by which