What's Exactly Aggregate Production Planning ? Discover It's significance, Costs, Steps , Strategies + Much More...!!
Abstract: Aggregate production planning, abbreviated as APP, is useful for operation management. It is associated with the determination of production, inventory, and personnel levels to fulfill varying demand over a planning perspective that ranges from a period of six months to one year. Aggregate production plans are needed to exploit workforce opportunities and represent a crucial part of operations management. Aggregate production plans facilitate the matching of supply and demand while reducing costs. The process of Aggregate production planning applies the upper-level predictions to lower-level, production-floor scheduling and is most successful when applied to periods 2 to 18 months in the future. Plans generally either “chase” demand, adjusting the workforce accordingly, or are “level” plans, meaning that labor is comparatively constant with fluctuations in demand being met by inventories and backorders. The concept of aggregate production planning denotes the proc