Visit either a local manufacturer or service provider (or research one online). Determine how it uses aggregate planning. Find out specifically what two items must be calculated first when developing an aggregate plan.

Visit either a local manufacturer or service provider (or research one online). Determine how it uses aggregate planning. Find out specifically what two items must be calculated first when developing an aggregate plan.

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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Concept explainers

Aggregate Planning Strategies

On the basis of the demand forecast, an organization can complete its business plans. When the business plans are complete, an organization can work backward from the completed total sales to the raw materials needed. Thus, annual and quarterly plans are divided into labor, raw material, working capital, and other demands for a medium-term period (6 months to 18 months). This process of evaluating moderate production requirements is known as aggregate planning.

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Step 1

Aggregate planning is the process of developing, analyzing, and maintaining a schedule of the overall operations of an organization. It is a method that can be used for balancing the capacity and demand in a way that minimizes the costs.

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