Explanation:
Aggregate planning can be defined as a marketing tool whose objective is to develop a 6 to 18 month plan for the organizational production process, in order to plan in advance the need for the amount of materials and resources that a company needs to have in each period time, so costs are reduced.
Some aggregate planning decisions involve the amount of subcontracting items, the amount of outsourcing, overtime hours, the amount of inventory to be maintained and to be accumulated in a certain period, etc.
Aggregated planning helps the organization to meet demand and supply in a period of time, and it is also possible to be an instrument of influence on supply and demand, so an organization that offers a variety of products and / or services could face difficulties management of all the variables necessary for the production of varied items, as this planning takes time, affects costs, customer satisfaction, synchronization of the supply chain, etc.
