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Aggregate planning deals with determining the quantity and timing of production for the intermediate future, often 3 to 18 months ahead.
As Operations managers, we have to determine the best way to meet forecasted demand by adjusting production rates, labour levels, inventory levels, overtime work, subcontracting rates and other controllable levels, with the objective of meeting forecasted demand while minimising cost over the planning period.
Hence, aggregate planning creates 'what-if' scenarios that allow Operations managers to best match demand with resources available within the organisation.
Required:
1) Identify & justify one factor ( for example, adjusting production rates, labour levels, inventory levels, overtime work, subcontracting rates and other controllable levels ) that needs to be considered for an organisation's aggregate plans.
2) Provide examples in the explanation ( for example, APPLE subcontract FOXCONN for certain products)
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