This text provides informative, short introductions to the core concepts of Operations Management. This text contains more than 50 concept entries and is fully cross-referenced.An outstanding reference for Operations Management students at all levels. 

Aggregate Production Planning

Aggregate production planning

Aggregate production planning is a tactical task with the objective of coming up with a medium-term (6 to 24 months) game plan to use an operations system's capacity to match demand.

Aggregate Production Planning: Purpose

When making capacity decisions, decision makers will set a desired level of activity for a facility. This decision is made because the experts estimate that this level will correspond to the average demand that the facility will experience in the future. Figure 46 shows that even in a case where that estimate was correct as an average, real demand will fluctuate. In the first few months in Figure 46, demand exceeds capacity. It then drops below capacity to peak up again above capacity on the right-hand side ...

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