Aggregate Planning
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May 1, 2024
3 minute read
Aggregate planning, a crucial aspect of operations management, plays a significant role in the alignment of production and demand over medium-term horizons, typically ranging from 3 to 18 months. This process involves balancing the supply and demand of products or services to optimize production efficiency and minimize costs. By forecasting demand, adjusting production rates, and managing inventory, aggregate planning helps organizations meet customer needs while ensuring profitability.
Importance of Aggregate Planning
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