Aggregate Production Planning

The Advantages of an Aggregate Production Plan

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By Subha Varadan, eHow Contributing Writer

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Manufacturers and service providers usually find that the demand for their products or services is not constant. Thus planning their production to meet demand is often problematic. Aggregate planning was developed to tackle the problem of meeting forecasted demand by adjusting production capacity. Aggregate planning has its advantages and disadvantages. It can be used across a wide range of industries, it develops a road map to operate efficiently, it is used for all production-planning processes, and is also flexible. This article outlines some of the main strategies used in aggregate planning and their advantages.

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