Answer to Question #221052 in Management for Nikita

Question

Defining the concept of aggregate plan for operational capacity management, which strategy (Level or Chase) do you think would be best applicable for the Foods & Beverages company?

Answer 1

Aggregate planning is a form of medium-term capacity planning that generally spans three to eighteen months. In a production context, it sets overall output levels and the proper resource input mix for linked product groups. The level is the best strategy because, In each time period of the plan, a level aggregate plan keeps a steady workforce and produces the same quantity of products.