Category Archives: Aggregate Planning

Aggregate Planning

Chapter Objectives

• Demonstrate how aggregate planning links long-range strategic planning and short-range scheduling.
• Present alternate strategies for matching supply and demand: adjusting supply (an operations function) or adjusting demand (a marketing function).
• Introduce strategies for developing aggregate plans and ways to identify their strengths and weaknesses.
• Define marginal costs and total costs as they pertain to aggregate planning.
• Introduce the concept of yield management as a tool for matching supply and demand in service operations.