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Aggregate Planning in Operations Management
Aggregate Planning in Operations Management
OPERATIONS MANAGEMENT -
PRODUCTION AND OPERATIONS
MANAGEMENT
Aggregate planning is an intermediate term planning decision. It is the process of planning the
quantity and timing of output over the intermediate time horizon (3 months to one year). Within this
range, the physical facilities are assumed to –10 be fixed for the planning period. Therefore,
fluctuations in demand must be met by varying labor and inventory schedule. Aggregate planning
seeks the best combination to minimize costs.