Answer to Question #213930 in Management for sumair

Question

Briefly discuss the managerial significance of aggregate planning with reference to capital investment

Answer 1

The process of establishing, assessing, and maintaining a preliminary, estimated timetable of an organization's total operations is known as aggregate planning. Targeted sales estimates, production levels, inventory levels, and customer backlogs are all part of the overall plan. This timetable is designed to meet the demand predicted at the lowest possible cost. When done correctly, aggregate planning should reduce the impact of shortsighted, day-to-day scheduling. Little amounts of material are ordered one week, with people laid off, and larger amounts are ordered the next week, with workers rehired. This longer-term perspective on resource use can help minimize short-term requirements changes with resulting cost savings. This longer-term perspective on resource consumption can assist reduce short-term requirement fluctuations and save money.