Aggregate Planning is.docx - Aggregate Planning is a fundamental aspect of the business planning process This process starts when your organization's

Aggregate Planning is.docx - Aggregate Planning is a...

This preview shows page 1 - 2 out of 2 pages.

Aggregate Planning is a fundamental aspect of the business planning process. This process starts when your organization's top administration accumulates inputs from finance, marketing, operations, and engineering to build up a key strategy. Once business plans are ready, an organization can do backward working from the final sales unit to raw materials required. Thus annual and quarterly plans are broken down into labor, raw material, working capital, etc. requirements over a medium-range period (6 months to 18 months). This process of working out production requirements for a medium-range is called aggregate planning. Aggregate planning is an operational activity critical to the organization as it looks to balance long-term strategic planning with short term production success. The following are a key consideration in aggregate planning: 1. Preparation of Budget: Aggregate decision includes budget allocation and distribution i.e., asset allocation to different parts of the decision. The financial plan might be designated to different variables of production.
Image of page 1
Image of page 2

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture